(FE)
The Finance Ministry has approved a capital infusion of Rs 7,577 crore in six weak public sector banks (PSBs) as part of its Indradhanush bank recapitalisation plan to boost their capital adequacy ratio. All the six banks are those banks that been put under Reserve Bank of India’s watch for high non-performing assets (NPA). These banks are Bank of India, IDBI Bank, Central Bank of India, Dena Bank, Bank of Maharashtra and UCO Bank.
Under the Indradhanush Plan, the government allocated Rs 70,000 crore for four years — Rs 25,000 crore each for FY 15-16 and 16-17 and Rs 10,000 crore each for 17-18 and 18-19. Lenders, which will receive capital through the preferential issue of shares, include Bank of India, IDBI Bank and UCO Bank, PTI reported.
The RBI has put has 10 banks under watch for high bad loans by initiating prompt corrective action against it, a move that will place various restrictions on the lender, including on fresh loans and dividend distribution. These banks are IDBI Bank, Indian Overseas Bank, Bank of Maharashtra, United Bank Of India, Dena Bank, Corporation Bank, UCO Bank, Central Bank of India, Oriental Bank of Commerce and Bank of India.
