The Government will soon consider capital infusion of Rs 12,000 crore in various state-owned banks, a top Finance Ministry official said. Mr. D K Mittal, Secretary in Department of Financial Services (DFS) said that the cabinet has been sought and the capital infusion is expected in next week.
The DFS also said that it is seeking nod for not coming back to the cabinet till 2018 for the capital infusions in the public sector banks. Mr. Mittal said, "The idea is not to go to the Cabinet again and again (for approval of capital infusion for Basel III)."
A formal approval of the Cabinet has been sought as each of the capital infusion in various Public Sector Banks will exceed the specified investment level of Rs 300 crore, Mr. Mittal said. The current rules require a Cabinet approval for any investment exceeding Rs 300 crore in a public sector company.
Till now, State Bank of India has received capital support from the Government. Bank of Maharashtra, Indian Overseas bank and United Bank of India will receive the capital support soon.