FinMin clears Rs 14,000 cr infusion in banks
PTI November 4, 2011The Finance Ministry has approved Rs 14,000 crore as part of capital infusion in banks for the financial year 2011-12, Minister of State for Finance Namo Narain Meena said on Friday.
Approval to the banks came at a time when they were asked to project their (capital) requirements, for 2011-12. "Banks projected Rs 18,000 crore (as capital requirement) for 2011-12 and Rs 19,000 crore for 2012-13," he said.
For the year 2010-11, about Rs 20,000 crore money was infused in the banking sector. "Rs 14,000 crore as Tier-I capital and Rs 6,000 crore was in the holding," he said on the sidelines of the annual three-day banking conference 'Bancon 2011'.
Earlier, in his inaugural address at the conference, organised by Indian Banks' Association and Indian Overseas Bank, he cautioned that Indian economy may witness a possible slowdown if the current economic crisis continues in Europe.
"Today, if we look at the world economy, be it US, Europe or Japan, there exists a lot of uncertainty in terms of policy measures and outcomes. The ongoing uncertainty in euro zone will bring back some comfort and stability but will need to be watched closely by emerging markets."