Sydney: Government will provide sufficient funds to recapitalise public sector banks to ensure that they play a significant role in boosting growth, Finance Minister Arun Jaitley said on Tuesday.
“Banks would be provided sufficient funds to recapitalize them,” he said after inaugurating a branch of Union Bank of India in Sydney, Australia. Jaitley, who is on the on a 4-day visit to Australia, said that the banks have to play an important role in achieving the higher growth rate in the country.
Last year, the government announced a revamp plan ‘Indradhanush’ to infuse Rs. 70,000 crore in state-owned banks over four years, while they will have to raise a further Rs. 1.1 lakh crore from markets to meet their capital requirements in line with global risk norms Basel-III.
In line with the blueprint, PSU banks will get Rs. 25,000 crore this fiscal and also in the next fiscal. Besides, Rs. 10,000 crore each would be infused in 2017-18 and 2018-19.
Union Bank of India is the 5th largest nationalized bank in India. Established in the year 1919, the bank has grown to a business mix of Rs. 5,89,889 crore, with deposits of Rs. 3,27,412 crore and advances of Rs. 2,62,477 crore, as of December 2015.