The government on Wednesday said it will finalise Rs 15,000-crore capital infusion for
public sector banks soon to help them enhance capital base and increase lending capacity.
"We will finalise recap for banks soon," Financial Services Secretary D K Mittal told reporters here.
Rights issue is under consideration for recapitalisation of banks, he said, adding that if government opts for rights issue for banks, it will be done for all banks.
Last week, Finance Minister
P Chidambaram had said that most banks would require additional capital and fund allocation to various banks would be decided in the next few weeks.
"We have budgetary provision for infusing additional capital and decision would be taken in the next few weeks about infusing additional capital into banks," Chidambaram had said.
"All but one bank have Tier I capital of above 8 per cent well above Basel norms. But if credit expansion has to take place, additional capital has to be infused. So we will infuse additional capital into the banks," he had said.
He had said the government has made Budget provision of Rs 15,000 crore for the current fiscal in this regard and allocation to various banks would be made.
The top three banks which require capital are Indian Overseas Bank, Central Bank of India and the Bank of Maharashtra, he informed.
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