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Govt to sanction Rs 2,000 cr for banks

29 Aug 2011 Evaluate

The government has decided to sanction Rs 2,000 crore to some public sector banks as part of its recapitalisation drive. The mode of disbursement would be decided later. The capital infusion would result in raising tier I capital or equity capital of the bank.  Besides, the capital infusion would result in enhancing government's stake in the select banks. This is part of the Rs 6,000 crore re-capitalisation amount for the public sector banks announced in the Budget this year.