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The government has decided to infuse 6,990 crore rupees to 9 Public Sector Banks to enhance the conditions according to the global norms. The infusion will give the PSU banks to do the business well and enables them to acquire new technologies and standards .

The above mentioned 9 banks include SBI, Bank of Baroda (BoB), Punjab National Bank (PNB), Syndicate Bank, Allahabad Bank, Indian Bank, Dena Bank, and Andhra Bank.

Public sector banks require equity capital of Rs 2.4 lakh crore by 2018 to meet global Basel III norms on capital adequacy. For the current fiscal, the government has allocated Rs 11,200 crore for bank capitalization in their 2014-15 budget.

"Out of the current year's budget, the Government of India has decided to infuse Rs 6,990 crore in nine Public Sector Banks (PSBs) for which orders are being issued," an official statement said.

"The methodology for arriving the amount to be infused in these banks has been based on efficiency parameters. First of all, weighted average of return on assets (ROA) for all PSBs for last three years put together was arrived at and all those who were above the average have been considered," it said.

In this capitalization attempt by the government SBI leads the sharewith Rs 2,970 crore, followed by BoB with Rs 1,260 crore, PNB - Rs 870 crore and Canara Bank - Rs 570 crore.

Rest of the banks are getting somehow low infusion, they are Syndicate Bank with Rs 460 crore, Allahabad Bank Rs 320 crore, Indian Bank Rs 280 crore, Dena Bank Rs 140 crore and Andhra Bank Rs 120 crore.

The remaining Rs 4,210 crore capital infusion may be completed before this financial year yending, that is till March 31.

The Congress led UPA II government has infused Rs 58,600 crore between 2011 and 2014 in the state-owned banks.

-Kannamsai