The Central Government has rescued six public sector banks (PSBs) by infusing an amount of Rs. 7, 577 crore. The infusion of capital has come at a very opportune time and this will help these ailing banks scale up overall capital adequacy ratios as they work on their books for the quarter ending in December, 2017.
The Government had previously sanctioned Rs. 2, 257 crore for BOI (Bank of India) which has been put under the Reserve Bank of India’s prompt correction action programme. The Government has also released a sum of Rs. 2, 729 crore for IDBI Bank. Dena Bank has received Rs. 243 crore from the Central Government while Central Bank of India has got Rs. 323 crore. UCO Bank has received Rs. 1, 375 crore from the Centre while Rs. 650 crore has been received by the Bank of Maharashtra.
The AIBEA (All India Bank Employees Association) has reportedly expressed its satisfaction with the capital infusion from the Government since it will help in tackling the immediate issues that are plaguing these affected banking institutions.