Lok Sabha Question No. 570 (UNSTARRED), answered on 2016-02-26
Subject: Capital Infusion in Banks
Ministry: FINANCE
Asked by: M. B. RAJESH, KIRTI (JHA) AZAD, PONNUSAMY VENUGOPAL, R.P. MARUTHARAJAA

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

## LOK SABHA UNSTARRED QUESTION NO. 570

## TO BE ANSWERED ON THE 26 th February,2016/Phalguna 7, 1937 (SAKA)

## CAPITAL INFUSION IN BANKS

## QUESTION

570 . SHRI M.B. RAJESH: SHRI KIRTI AZAD: DR. P. VENUGOPAL: SHRI R.P. MARUTHARAJAA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has any proposal for capital infusion in Public Sector Banks (PSBs) over the next five years to meet the new global prudential capital requirement popularly known as Basel III norms;
- (b) if so, the details thereof along with the details of capital infused to PSBs during the last three years and the current year, bank-wise;
- (c) whether capital infusion in the banks would enable them to enhance their growth and tackle bad loans and curtail their ability to lend private investment and if so, the details thereof;
- (d) whether the Government has put in place any mechanism to monitor the said funding to the banks periodically; and
- (e) if so, the details thereof and if not, the reasons therefor along with the steps taken/being taken by the Government for strengthening the PSBs?

## ANSWER

The Minister of State in the Ministry of Finance

(SHRI JAYANT SINHA)

- a) to (c) :The Government had announced 'Indradhanush', a plan to revamp Public Sector Banks (PSBs) and as part of that, a program of capitalization to ensure that PSBs remain Basel -III compliant, was also announced under which Rs. 70,000 crore is supposed to be provided between 2015 to 2019. The capital infusion by the Government in PSBs is done with twin objective of adequately meeting the credit requirement of the productive sectors of economy as well as to maintain regulatory capital adequacy ratios in PSBs as per Basel-III norms. Details of capital infused

in PSBs during last 3 years and current year are Annexed.

- (d) & (e) : Government has put in place a mechanism of Key Performance Indicators (KPI) on Annual Goals to give targets and monitor the performance of the Public Sector Banks (PSBs) on various performance parameters. Meetings are also conducted at the level of Finance Minister to review performance of the Public Sector Banks at regular intervals.

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Amount Rs. in crores

| Name of the PSB           |   2012-13 |   2013-14 |   2014-15 |   2015-16 |
|---------------------------|-----------|-----------|-----------|-----------|
| Allahabad Bank            |         0 |       400 |       320 |       283 |
| Andhra Bank               |         0 |       200 |       120 |       378 |
| Bank of Baroda            |       850 |       550 |      1260 |      1786 |
| Bank of India             |       809 |      1000 |         0 |      2455 |
| Bank of Maharashtra       |       406 |       800 |         0 |       394 |
| Canara Bank               |         0 |       500 |       570 |       947 |
| Central Bank of India     |      2406 |      1800 |         0 |         0 |
| Corporation Bank.         |       204 |       450 |         0 |       857 |
| Dena Bank                 |         0 |       700 |       140 |       407 |
| Indian Overseas Bank      |      1000 |      1200 |         0 |      2009 |
| Indian Bank               |         0 |         0 |       280 |         0 |
| Oriental Bank of Commerce |         0 |       150 |         0 |         0 |
| Punjab National Bank      |      1248 |       500 |       870 |      1732 |
| Punjab & Sind Bank        |       140 |       100 |         0 |         0 |
| Syndicate Bank            |         0 |       200 |       460 |         0 |
| UCO Bank                  |       681 |       200 |         0 |         0 |
| Union Bank of India       |      1114 |       500 |         0 |      1080 |
| United Bank of India      |       100 |       700 |         0 |         0 |
| Vijaya Bank               |         0 |       250 |         0 |         0 |
| State Bank of India       |      3004 |      2000 |      2970 |      5393 |
| IDBI Bank Ltd             |       555 |      1800 |         0 |      2229 |
| TOTAL                     |     12517 |     14000 |      6990 |     19950 |