16500 CR. TO BE INFUSED INTO 13 BANKS IN 2010-11

According to Mr. Ashok Chawla, Finance Sceretary, the Government has identified 13 PSBs for capital infusion of Rs.16500 crore during the financial year 2010-11 to ensure that PSBs have Tier-I Capital of 8%.

As on December 31, at least four banks had Tier-I capital of less than 8 per cent. UCO Bank’s Tier-I capital was 6.5 per cent, IDBI Bank’s Tier-I capital was 6.6 per cent, Bank of Maharshtra ’s Tier-I capital was below 8 per cent and for Central Bank of India it was 7.14 per cent. 

According to RBI norms, banks have to maintain a minimum capital adequacy ratio of 9 per cent, with Tier I capital of at least 6 per cent.

Source: http://www.business-standard.com/india/news/rs-16500-cr-to-be-infused-into-13-banks-in-2010-11/389884/