Budget Box: Government to infuse Rs 14, 000 cr in PSU banks next fiscal

In the Budget speech it has been announced that the government will infuse Rs 14,000 crore in public sector banks in next fiscal (2013-14).

Objective: To ensure that PSU Banks meet the Basel III regulations regarding capital adequacy.

Implementation of Basel III capital regulations envisages enhancing the requirement of core equity capital by banks due to higher capital ratios. The Basel III capital ratios will be fully phased in as on March 31, 2018.

The RBI has extended the date for implementing Basel III regulations by 3 months to April 1, 2013.

The Government had poured in about Rs 20,117 crore in public sector banks during 2010-11 and Rs 12,000 crore in 2011-12.

Month: Current Affairs - March, 2013