Government will provide sufficient funds to recapitalise public sector banks to ensure that they play a significant role in boosting growth, Finance Minister Arun Jaitley said on Tuesday.
"Banks would be provided sufficient funds to recapitalise them," he said after inaugurating a branch of Union Bank of India in Sydney, Australia.
Jaitley, who is on the on a 4-day visit to Australia, said that the banks have to play an important role in achieving the higher growth rate in the country.
Last year, the government announced a revamp plan 'Indradhanush' to infuse Rs 70,000 crore (Rs 700 billion) in state-owned banks over four years, while they will have to raise a further Rs 1.1 lakh crore (Rs 1.1 trillion) from markets to meet their capital requirements in line with global risk norms Basel-III.
In line with the blueprint, PSU banks will get Rs 25,000 crore (Rs 250 billion) this fiscal and also in the next fiscal.
Besides, Rs 10,000 crore (Rs 100 billion) each would be infused in 2017-18 and 2018-19.
Union Bank of India is the 5th largest nationalised bank in India.
Established in the year 1919, the bank has grown to a business mix of Rs 5,89,889 crore (Rs 5,898.89 billion), with deposits of Rs 3,27,412 crore (Rs 3,274.12 billion) and advances of Rs 2,62,477 crore (Rs 2,624.77 billion), as of December 2015.
