The Union finance ministry today approved infusion of Rs 11,336 crore in five state-owned lenders including PNB, Corporation Bank and Andhra Bank to help them meet regulatory capital requirement, sources said.
This is the first ever capital infusion in the current fiscal and the remaining amount of Rs 53,664 crore would be disbursed during the course of the year.
As per the plan, the sources said, Punjab National Bank (PNB), hit by Nirav Modi scam, will get the highest amount of Rs 2 ,816 crore, while Allahabad Bank to get Rs 1,790 crore.
Besides, Andhra Bank to get Rs 2,019 crore, Indian Overseas Bank – Rs 2,157 crore and Corporation Bank – Rs 2,555 crore.
These banks have come under pressure because of interest payment to their bond holders of Additional Tier 1 (AT-1) bonds, the sources said.
As a result, they were facing the risk of breaching the regulatory capital requirement, they said, adding that the ministry has decided to provide capital to 4-5 banks which are facing “acute shortage”.