New Delhi, September 14
The authorities on Monday sought Parliament’s approval for infusing Rs 20,000 crore in public sector banks within the present monetary yr to satisfy regulatory necessities.
This is a part of the primary batch of Supplementary Demands for Grants for 2020-21 moved by Finance Minister Nirmala Sitharaman within the Lok Sabha.
In all, the federal government has sought Parliament’s nod for added spending of Rs 2.35 lakh crore, which features a money outgo of Rs 1.66 lakh crore, primarily to satisfy bills for combating the COVID-19 pandemic.
“For meeting expenditure towards recapitalisation of Public Sector Banks through issue of Government Securities” the federal government has requested for Parliament’s authorisation of Rs 20,000 crore, as per a doc.
In 2019-20, the federal government proposed to make Rs 70,000 crore capital infusion into the Public Sector Banks (PSBs) to spice up credit score for a powerful impetus to the economic system.
However, the federal government shunned committing any capital within the Budget 2020-21 for the PSBs, hoping that the lenders will increase funds from the market relying on the necessities.
In the final monetary yr, Punjab National Bank obtained Rs 16,091 crore, Union Bank of India obtained Rs 11,768 crore whereas Canara Bank and Indian Bank obtained Rs 6,571 crore and Rs 2,534 crore, respectively.
Allahabad Bank obtained Rs 2,153 crore, United Bank of India obtained 1,666 crore and Andhra Bank obtained Rs 200 crore. These three lenders have been merged with numerous PSBs.
Besides, Bank of Baroda obtained a capital infusion of Rs 7,000 crore, Indian Overseas Bank obtained Rs 4,360 crore and UCO Bank obtained Rs 2,142 crore. Punjab & Sind Bank obtained Rs 787 crore and Central Bank of India obtained Rs 3,353 crore.
In addition, LIC-controlled IDBI Bank obtained extra capital of Rs 4,557 crore by way of the supplementary calls for for grants.
The authorities has additionally sought Rs 1,232 crore as subsidy to Small Industries Development Bank of India (SIDBI) on curiosity subvention of two per cent on immediate compensation of Shishu Loans prolonged underneath Pradhan Mantri Mudra Yojana (PMMY).
Further, Sitharaman has sought approval of Parliament of Rs 4,000 crore for assembly an extra expenditure in the direction of Grants-in-Aid General to National Credit Guarantee Trustee Company Limited (NCGTC) for the Guarantee Emergency Credit Line (GECL) facility to eligible MSME debtors. — PTI