Bank recapitalization plan would increase lending to MSMEs: Fin Min

Union finance minister Arun Jaitley during a press conference in New Delhi on Wednesday

"State Bank of India will get Rs 8,800 crore, Rs 3,571 crore for Oriental Bank of Commerce, Rs 3,045 billion for Dena Bank, Rs 5,158 crore for Central Bank of India, Rs 4,694 billion for Indian Overseas Bank, Rs 9,232 billion for Bank of India", banking secretary Rajeev Kumar said addressing the media.

Among gainers, only IDBI Bank and Bank of India, the two banks that received the most capital, were trading in green, rallying up to 3 per cent on the NSE.

The report suggests that Health Minister JP Nadda had written to Finance Minister Arun Jaitley to enhance this year's Budget allocation on public health by whopping 33 per cent to $10 billion on grounds that the government needed to expand vaccination programmes and free drugs distribution system in the country. The funds will help PSBs meet the regulatory capital ratios under Basel III regulations.

The bank recapitalisation plan revealed yesterday would focus "sharply" on increasing bank lending to the micro, small and medium enterprise (MSME) sector, Ministry of Finance has said. The government has specifically asked the banks to use much of the recap funds for lending to the SME sector.

Analysts had said mandating reforms would be critical to prevent banks from engaging in the same indiscriminate lending that led to the current problems. However, the government, which aims to boost economic growth through investment in roads and other infrastructure avenues, is bound tighten allocation for other sectors considering sluggish growth and dip in revenue generation. "The original decision stands, it has not been reconsidered but then there is always a time in implementing the decision", Jaitley had told mediapersons while unveiling banking sector reforms on January 24.

He said, every deposits of the people in banks are safe as banks are the article of faith.

Melania Trump cancels plans to fly with Trump to Davos
Daniels later retracted her claims while Cohen said President Trump 'vehemently denies any such occurrence as has Ms. Trump's lawyer, Michael Cohen , arranged the payment during the campaign.

It said the average core capitalisation for the state banks would be likely to reflect a cumulative increase of around 140 basis points.

The government will issue recapitalisation bonds of 6-10 years maturity.

"There is no fiscal impact of bond issuance to banks", Mr. Garg said.

Top lender State Bank of India will get 88 billion rupees, while second-biggest state-run lender Punjab National Bank will get 54.73 billion.

Among banks now under the PCA, UCO Bank will get Rs 6,507 crore, Central Bank of India Rs 5,158 crore, Indian Overseas Bank Rs 4,694 crore, Oriental Bank of Commerce Rs 3,571 crore, Dena Bank Rs 3,045 crore, Bank of Maharashtra Rs 3,173 crore, United Bank of India Rs 2,634 crore, Corporation Bank Rs 2,187 crore and Allahabad Bank Rs 1,500 crore.

Related:

Comments

Latest news

Mayor Landrieu cancels meeting with White House after latest 'sanctuary' warnings
Conference of Mayors in Washington , where New York Mayor Bill DiBlasio, among others, chose to boycott the White House meeting. Then he criticized the mayors of other cities like NY and New Orleans who also skipped the meeting.

Hawks rookie Collins named to Rising Stars game for All-Star weekend
He ranked tied for first among qualified rookies in blocks per game, second in field-goal percentage (59) and fourth in rebounds. He also ranks third overall in the National Basketball Association in free throw shooting percentage at 92.4%.

The NBA gives an assist to sports betting push
Crucially it makes no explicit mention of state casinos wanting to authorise sports betting or any mention of online betting. So, the one percent " integrity fee " would amount to as much as 29 percent of revenue, according to the lobbying group.

Acer's New Chromebook Spin 11 Features A 360-Degree Hinge
Plus, customers can stand it up in display mode to get closer to the screen, or use it in tent-mode for small spaces. It's also well connected with a brace of USB Type-C ports, two USB 3.0 connections, and a microSD card reader.

Google Audiobooks Launches in 45 Countries
The Audiobooks section on Google Play is live right now, and you can avail a 50% discount on your first book. The company is rolling out on Play and the Google Play Books app works with both Android and iOS.

Apple Backports Meltdown Patch to Older macOS Versions
These are created to tackle vulnerabilities with Meltdown and Spectre on older MacBooks that use macOS Sierra and OS X El Captain. Additionally, Apple has also macOS High Sierra version 10.13.3 that focuses on security, stability, and bug fixes.

Victims identified in Kentucky school shooting; witnesses describe running for their lives
He says the 15-year-old male suspect will be charged with two counts of murder and multiple counts of attempted murder. One student said they could never look at the school the same way again. "It's frightful ", A concerned parent said.

Turkey kills at least 260 Kurdish, Islamic State fighters in Syria offensive
United States officials see the Turkish offensive as distracting from efforts to ensure ISIS militants in the region are defeated. Communication between the United States and Turkey has continued over Syria , despite the countries' differences.

MX will fight tariffs on washers, solar panels
President Trump continued his America-first agenda on Monday by passing a 4 year tariff on all solar panel imports from the Asian country.

India loses Series but they have Wanderers
We are all expecting some rain at least on the first two days, so the pacers may get to dictate this game. On the eve of the final Test, Virat Kohli spoke on different lines.

Pakistan police arrest main suspect in Zainab rape and murder case
The accused was arrested when his DNA matched with the sample found from the victim's body, Geo News reported, citing the sources. Zainab's brother, Abu Bakar said that the culprit should be given an exemplary sentence so that others like him get a message.

German Nurse Convicted of Murder Charged in 97 Additional Deaths
The charges were expected after officials said in November that Hoegel may have killed more than 100 patients over several years. Koziolek believed Hoegel "in all cases at least accepted the death of the patients as a result of the effect of the drugs".

Tesla Driver Arrested For DUI - Claims Car Was On Autopilot
For what it's worth, Tesla over the past few years has tweaked the Autopilot feature as to make it safer for drivers. The auto had been travelling at 65mph before the accident near Los Angeles, Culver City firefighters union said.

NBA All-Star Game: Reserves announced for Los Angeles
Simmons, who would have become the first Australian selected as an All-Star, was in good company in being snubbed on Tuesday. While some of these reserves may feel like they should've been starting, all that matters is that they're an All-Star.

International Monetary Fund lowers Spain's forecast for growth by political uncertainty
Current upswing in the global economy "furnishes an ideal moment to act on a range of multilateral challenges", Obstfeld said. The increase in fuel prices raised headline inflation in advanced economies, but wage and core-price inflation remain weak.

Other news