CABINET APPROVES RS.
12,517 CRORE CAPITAL INFUSION IN 10 PSU BANKS
[Gives
in-principle approval to provide additional capital
infusion to PSBs for 5 years]
The
Union Cabinet on January 10, 2013 approved a capital infusion package of '
12,517 crore that would help improve liquidity and maintain capital adequacy
ratios of about 10 public sector banks.
It
also gave an in-principle approval to provide need based addition capital
infusion to public sector lenders for a five-year period from 2013-14 to 2018-19.
This would ensure that banks can easily go in for re-capitalisation to comply
with the phased implementation of Basel III norms from April 1, 2013 to March
2018.
"Pursuant
to the Budget announcement made by the Finance Minister in March 2012, we are infusing
additional capital into the public sector banks. It will be done before the end
of this fiscal," Finance Minister P. Chidambaram said after the Cabinet
meeting, adding that about 10 banks would be benefited from the move.
The
RBI had recently given banks a three-month extension to comply with the Basel
III norms from the earlier deadline of January 1, 2013. The government
infused
about RS. 20,117 crore in public sector banks during 2010-11, and RS. 12,000
crore in 2011-12.
Meanwhile,
the Cabinet also relaxed the eligibility criteria for the presiding officer of
the Securities Appellate Tribunal by approving amendments to Section 15M of the
SEBI Act, 1992. Under the modified norms, a retired judge of a High Court with
seven years of experience would be eligible for the appointment
for the SAT chief's post, which has been lying vacant since November 2011.
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