More capital expected for the state-run banks

Fresh capital worth Rs 10,000 crore is expected for the public sector banks. Official sources said that Credit amounting to $2 billion is likely to come by November end and thereafter disbursal to individual banks will start depending on the financial status of each bank at that time.The loans are a part of the World Bank's $14 billion crisis-related lending for India. This will help the country in faster recovery.This credit infusion would ensure credit flow in productive sectors. It aims at enabling banks to maintain a Capital to risk weighted assets ratio (CRAR) of 12 percent in order to sustain economic growth.The finance Ministry have received petitions from various banks regarding a share...

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Rs 10,000-cr of WB fund to flow into banks by December

More than half a dozen PSU banks are expected to get about Rs 10,000 crore as fresh capital by December following the World Bank board's decision to inject funds into these PSBs and enhance their capacity to lend.Loans worth $2 billion is likely to come by the end of November and thereafter disbursal to individual banks would start depending on the financial status of each bank at that time, said official sources.Various banks have requested for capital infusion and the Finance Ministry is examining those request, sources said.Earlier this month, the executive board of the World Bank approved $2 billion loan to enhance banks' capital.The World Bank fund would be utilised to shore up their capital...

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