India To Infuse INR 6.99 Bln Into Public Sector Banks

(RTTNews) - India plans to infuse extra funds into efficient public sector banks with an aim to strengthen their position.

The Ministry of Finance on Saturday said it will provide INR 6.99 billion as extra capital. The government has adopted a new criteria to select nine state-run lenders.

For the last few years, the government has been injecting capital to those banks whose equity erosion has taken place.

Therefore, this year, it has adopted a new criteria in which the banks which are more efficient would only be rewarded with extra capital for their equity so that they can further strengthen their position, the ministry said.

The nine banks that will benefit from this infusion include the biggest lender, the State Bank of India, and other banks such as Bank of Baroda, Punjab National Bank and Canara Bank.