The Finance Ministry granted approval to 12 proposals of PSBs to raise a sum of ₹2,914.038 crore through preferential allotment and permission given to raise ₹ 200 crore by United Bank of India through QIP mode.
The government had already infused a sum of ₹ 25,000 crore in 19 PSBs during FY 2015—16.
A budgetary provision of ₹25,000 crore has been made for 2016—17 and the government has already allocated ₹ 22,915 crore to 13 PSBs on July 19, 2016 of which 75 per cent has been allocated in first tranche while remaining amount will be released on assessment of performance of PSBs.
Union Cabinet in June 2016 had approved the proposal of acquisition of assets and liabilities of subsidiary banks i.e. State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Bhartiya Mahila Bank (BMB).