Lok Sabha Question No. 171 (UNSTARRED), answered on 2017-12-15
Subject: Re-Capitalisation of PSBS
Ministry: FINANCE
Asked by: SANJAY SHAMRAO DHOTRE, BHARTRUHARI MAHTAB, RAHUL RAMESH SHEWALE, R. GOPALAKRISHNAN

## GOVERNMENT  OF INDIA MINISTRY OF FINANCE DEPARTMENT  OF FINANCIAL  SERVICES

## LOK SABHA UNSTARRED QUESTION NO.171

TO BE ANSWERED  ON THE 15 TH  December2017/  Agrahayana  24, 1939 (SAKA) Re-Capitalisation  of PSBs

## 171.    SHRI SANJAY  DHOTRE: SHRI BHARTRUHARI MAHTAB: SHRI RAHUL  SHEWALE: SHRI R. GOPALAKRISHNAN:

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether   the  Government   proposes  to  infuse  capital   in  Public   Sector   Banks   (PSBs)  to support  credit  growth  and job creation  across the country;
- (b) if so, the  details  thereof  along  with  the capital  infused  in such banks  so far, Bank-wise;
- (c) whether  the Government  has evaluated  the performance  of laws  recently  enacted  by  the Government   to  curb rising   Non-Performing   Assets  (NPAs)   of  the  said banks   before  taking decision  of infusion  of capital  in such banks;
- (d) if so, the  details  and outcome  thereof  and if not,  the reasons therefor;
- (e) whether   the  Government   has conducted   any   study on  the  success  of  the  previous   recapitalisation of PSBs in the country;  and
- (f) if  so, the details  and outcome  thereof  and if not,  the reasons therefor  along  with  the other  steps taken/being  taken  by  the Government  in this  regard?

## ANSWER

## The Minister  of State in the Ministry  of Finance (SHRI SHIV PRATAP  SHUKLA)

- (a) and (b):   As part  of Indradhanush  Plan  Government  had announced  infusion  of Rs. 70,000 crore   out  of  budgetary   allocations   for  infusing   capital   in  Public   Sector   Banks   (PSBs)  in  four financial  years.  Amounts  of Rs. 25,000 crore  each in the financial  years 2015-16 and 2016-17, and  Rs.  10,000  crore   each  in  financial   years 2017-18  and  2018-19,  were   envisaged.   Further, keeping   in  view   requirements of  PSBs,  Government   has  recently   announced   decision   to recapitalise Public Sector Banks (PSBs) to the tune of Rs. 2,11,000  crore, through recapitalisation bonds of Rs. 1,35,000 crore  and budgetary  provision  of Rs. 18,139 crore  (under Indradhanush  plan) over two  financial  years, and the balance  through  capital  raising  by  banks from the market.  Government  has so far infused capital  of Rs. 51,858 crore  in PSBs. Bank-wise details  are in  Annex.
- (c) and (d): The Insolvency  and Bankruptcy Code was enacted for reorganisation  and insolvency resolution  of corporates.  The  object  of the law  is not  curbing  rise of  NPAs.
- (e) and (f):  Government  monitors  capital  adequacy  of PSBs. Capital  infusion  has enabled  PSBs to remain  compliant  with  Basel III capital  adequacy  norms,  across financial  years,  despite  high NPA and consequential  provisioning  requirement.

Lok Sabha Unstarred Question No. 171 for 15.12.2017, regarding 'Recapitalisation of PSBs'

Details of Capital infused in Public Sector Banks (PSBs) by Government  since financial year 2015-16

(In crore  Rupees)

| S. No.   | Bank                    |   2015-16 |   2016-17 | 2017-18   |
|----------|-------------------------|-----------|-----------|-----------|
| 1        | AllahabadBank           |       973 |    451    | ----      |
| 2        | Andhra Bank             |       378 |   1100    | ----      |
| 3        | Bank ofBaroda           |      1786 |      0    | ----      |
| 4        | Bank ofIndia            |      3605 |   2838    | ----      |
| 5        | Bank ofMaharashtra      |       394 |    300    | ----      |
| 6        | CanaraBank              |       947 |    745.18 | ----      |
| 7        | CentralBank ofIndia     |       535 |   1397    | ----      |
| 8        | Corporation Bank        |       857 |    508    | ----      |
| 9        | DenaBank                |       407 |   1046    | ----      |
| 10       | IndianOverseasBank      |      2009 |   2651    | ----      |
| 11       | OrientalBankof Commerce |       300 |      0    | ----      |
| 12       | PunjabNationalBank      |      1732 |   2112    | ----      |
| 13       | SyndicateBank           |       740 |    776    | ----      |
| 14       | StateBank ofIndia       |      5393 |   5681    | ----      |
| 15       | UCOBank                 |       935 |   1925    | ----      |
| 16       | UnionBank ofIndia       |      1080 |    541    | ----      |
| 17       | UnitedBank ofIndia      |       480 |   1026    | ----      |
| 18       | VijayaBank              |       220 |      0    | ----      |
| 19       | IDBI Bank               |      2229 |   1900    | 1861.00   |
|          | Total                   |     25000 |  24997.2  | 1861.00   |

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