More funds to public sector banks: FM Chidambaram
By Joseph Samson
Dec 20, 2012
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Finance Minister, Mr. P Chidambaram said that the Centre is committed to infuse more capital into public sector banks (PSBs).

Mr. Chidambaram replying to the discussions on the Banking Bill in Lok Sabha said that around Rs 15,000 crore capital will be infused in public sector banks before March-end.

Finance Minister said that the Bill would enable PSBs to raise capital through every accepted mode including rights issue, bonus shares without diluting their public sector capital.

He even pointed out that private sector banks are able to grow because they are able to raise more capital. But in Public sector banks, they have to rely on the Government to infuse capital.

"Today, public sector banks have a share of 75 per cent of the business. Notwithstanding the competition posed by private sector banks, the public sector banks are holding on their own," Mr. Chidambaram said.

He said that more capital might be infused into State Bank of India if the status as the largest commercial bank were to be maintained.


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