New Delhi: The government Thursday said it will infuse Rs 14,000 crore in public sector banks next fiscal to ensure that they meet the global capital adequacy norms.
"Before end of March 2013, we should provide Rs 12,517 crore to the to infuse additional capital into 13 public sector banks. In 2013-14, I propose to provide a further amount of Rs 14,000 crore for capital infusion," Finance Minister P Chidambaram said in his Budget speech.
"We should ensure that public sector banks always meet Basel III regulations as they come into force in phase manner," he said while presenting the Union Budget 2013-14 in Parliament.
Implementation of Basel III capital regulations envisage enhancing requirement of core equity capital by banks due to higher capital ratios. The Basel III capital ratios will be fully phased in as on March 31, 2018.
The Reserve Bank has extended the date for implementing Basel III by three months to April 1, 2013.
The government infused about Rs 20,117 crore in public sector banks during 2010-11, and Rs 12,000 crore in 2011-12.
First Published: Thursday, February 28, 2013, 13:49