get Rs 2,816 crore, a government statement said on July 19. The parameter for allocation was capital requirements of the banks based on compounded annual growth rate (CAGR) for the last five years, banks' own projections of credit growth and an objective assessment of the potential for growth of each PSU bank.
As a result of the above exercise, 75 percent of the amount collected for each bank is being released now to provide liquidity support for lending operations as also to enable banks to raise funds from the market, the statement said. The remaining amount, to be released later is linked to performance, with particular reference to greater efficiency, growth of both credit and deposits and reduction in the cost of operations.
In line with the announcements made under Indradhanush and the Budget, the government undertook an exercise to assess the capitalization needs of PSU Banks for 2016-17.
Indradhanush is a seven pronged plan to revamp functioning of public sector banks. The seven elements include appointments, board of bureau, capitalisation, de-stressing, and empowerment, framework of accountability and governance reforms.
Finance minister Arun Jaitley had said the government might release higher sum than provided in the Budget, if resources permit it.
Here is a list of the PSU banks and their share.
Name of Bank Amount Rs (In crore)
1. Allahabad Bank 44
2. Bank of India 1,784
3. Canara Bank 997
4. Central Bank of India 1,729
5. Corporation Bank 677
6. Dena Bank 594
7. Indian Overseas Bank 3,101
8. Punjab National Bank 2,816
9. State Bank of India 7,575
10. Syndicate bank 1,034
11. UCO Bank 1,033
12. Union Bank of India 721
13. United Bank of India 810
Total Rs 22,915 cr