Bank Recapitalisation

Prelims level : “Economy-Banking.” Mains level : GS-3 “Indian economy, issues related to planning and mobilization of resources, growth, development and employment.”
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In News:

  • Govt infuses nearly Rs 11,000 cr capital in public sector banks.


  • The government has infused 10,882 crore rupees in four public sector banks, including UCO Bank and Syndicate Bank. It is part of 28,615 crore rupees capital infusion to be done in seven public sector lenders. 

Bank Recapitalisation:

  • Under this plan, PSBs will get Rs 1.35 lakh crore from Recapitalisation Bonds, Rs 18,000 crore from Budgetary and remaining Rs 58,000 crore will be raised through sale of share of banks.
  • The nature of recapitalisation bonds will be decided in coming months and these bonds will be frontloaded over next four quarters with maximum timeframe of two years.
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