RRBs get Rs. 632 crore to enhance lending
By Joseph Samson
Jun 8, 2012
Print    Email    RSS   

The cabinet has approved a Rs. 632 crore funding for cash deficient regional rural banks (RRB) to give some support to their capital adequacy and lending capabilities to the agricultural sector.

The move is a result of Dr. K.C. Chakrabarty's recommendations to recapitalize 40 sick RRBs, which provide loans to the priority sector. As of March 2012, 16 banks were recapitalized, while there were issues with the state government's contribution for the remainder.

"The Union Cabinet today approved the release of 50 per cent share of the central government for recapitalisation of the remaining RRBs to improve their capital to risk weighted assets ratio (CRAR)," said an official release.

The central government owns half of the capital of RRBs, while the sponsor bank owns 35%, the remainder is owned by the state government. In case of recapitalization the contributions are to be made on proportionate basis.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Effect of employment on loan eligibility...
Home Loans: How to reduce your floating rate
Loan against Property: A shoulder to rest...
Property: A good investment option to...
Home Loan: A way to reduce your taxable...

PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive