Lok Sabha Question No. 875 (UNSTARRED), answered on 2018-12-14
Subject: Infusion of Funds
Ministry: FINANCE
Asked by: VEENA DEVI, GOPAL CHINAYYA SHETTY

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

## 23, 1940  (SAKA) Infusion of Funds

## LOK SABHA UNSTARRED QUESTION NO. †875 TO BE ANSWERED ON THE 14 TH  DECEMBER 2018/ AGRAHAYANA

## †875.  SHRIMATI VEENA  DEVI: SHRI  GOPAL  SHETTY:

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether   the  Government   has  decided  to  infuse  capital and  allocated   funds  to improve  the condition  of banking  sector and other  Government  undertakings;
- (b) if so, the details  of funds allocated  for the said purpose,  Undertaking-wise; and
- (c) the details  of the benefits  likely  to accrue  to the customers  by  providing  this  capital to the banks  and undertakings?

## ANSWER

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

- (a)  and  (b):  Government   of  India  (GoI)  announced   recapitalisation of  Public   Sector Banks (PSBs) to the tune of Rs. 2.11 lakh  crore  in October  2017, through  infusion  of capital  by  the Government  and raising  of capital  by  banks  from  the markets.  Rs. 88,139 crore  was infused  by  the Government  in PSBs during  financial  year  (FY) 2017-18 after the recapitalisation announcement  and provision  of Rs. 65,000 crore  has been made in the budget  for the current financial year for infusion. Since the recapitalisation announcement   till   November   2018,  PSBs  have  been  recapitalised   to  the  tune   of  Rs. 1,28,861 crore  through  infusion  and mobilisation of capital  from  the market.  Bank-wise details  of capital  infusion  by  the Government  in FY 2017-18 and current  FY 2018-19, up to 30.11.2018),  are in the Annexure.
- (c): The benefits  that  have accrued  to customers,  include, inter alia , the following 
- (i) increasing  access to banking  services from home  and mobile  through  digital  banking and enhanced  customer  ease
- (ii) unprecedented  financial  inclusion,  Jan Dhan programme  by  the Government  has enabled   opening   of  bank   accounts   for  millions   of  previously unbanked   customers (about  33.46 crore  such accounts  have been set up as of 5.12.2018,  with  balance  of about Rs. 84,800 crore)  and allowing  users to receive  government  subsidies  (as DBT) and to access remittances,  credit,  insurance,  and essentially  being included financially,
- (iii) increased   availability of  loans  upto Rs.  10  lakh   to  the  non-corporate,   non-farm small/micro  enterprises  under Pradhan  Mantri  MUDRA  Yojana  (PMMY),  wherein  a borrower  can approach  any  of the lending  institutions  or can apply  online  through portal.   (during   FY  2017-18,  4.81  crore   loans   were   sanctioned   and  in  the  current financial  year,  as on 7.12.2018,  2.81 crore  loans  MUDRA  loans  have been sanctioned
- (iv) increasing lending to MSMEs  through   time-bound   automated   processing   and transparent   status-tracking, with   financially and  technologically strengthened   banks leveraging  digitalised  bank  statements  and income-tax  and GST returns  and according in-principle  loan  sanction  within  59 minutes,  and
- (v) meet the production  credit   requirements   of  the  farmers   in  a  timely   and  hassle-free manner  by  introducing  Rupay  Kisan Credit  Card

India's  global-rank  for 'getting  creit'  as per World  Bank's  Ease of Doing  Business Index, has improved  from 44 in 2016 to 22 in 2018.

Annexure Lok Sabha Unstarred  Question  No. †875,  for  14.12.2018, regarding  'Infusion of Funds' Capital Infusion  by Government Amounts in crore  Rupee

|   S. No | Bank                    | 2017-18   | 2018-19 (up to 30.11.2018)   |
|---------|-------------------------|-----------|------------------------------|
|       1 | AllahabadBank           | 1,500     | 4,844                        |
|       2 | Andhra Bank             | 1,890     | 2,019                        |
|       3 | Bank ofBaroda           | 5,375     | -                            |
|       4 | Bank ofIndia            | 9,232     | -                            |
|       5 | Bank ofMaharashtra      | 3,173     | -                            |
|       6 | CanaraBank              | 4,865     | -                            |
|       7 | CentralBank ofIndia     | 5,158     | 2,354                        |
|       8 | Corporation Bank        | 2,187     | 2,555                        |
|       9 | DenaBank                | 3,045     | -                            |
|      10 | IDBI Bank Limited       | 12,471    | -                            |
|      11 | IndianBank              | -         | -                            |
|      12 | IndianOverseasBank      | 4,694     | 2,157                        |
|      13 | OrientalBankof Commerce | 3,571     | -                            |
|      14 | PunjabNationalBank      | 5,473     | 8,247                        |
|      15 | Punjaband SindBank      | 785       | -                            |
|      16 | SyndicateBank           | 2,839     | 728                          |
|      17 | UCOBank                 | 6,507     | -                            |
|      18 | UnionBank ofIndia       | 4,524     | -                            |
|      19 | UnitedBank ofIndia      | 2,634     | -                            |
|      20 | VijayaBank              | 1,277     | -                            |
|      21 | StateBank ofIndia       | 8,800     | -                            |

Source:  PSBs