The Finance Ministry will, by this month-end, complete the release of bank recapitalisation funds worth Rs 14,000 crore, said Minister of State for Finance Namo Narain Meena.
The Centre had in this year’s Budget provided Rs 14,000 crore for capital infusion in various public sector banks.
The Government is committed to the growth of public sector banks and will continue to provide necessary support so as to ensure that they are well capitalised, Meena said at a conference on banking organised by the Confederation of Indian Industry here on Saturday.
Most public sector banks that are receiving capital infusion from the Government have received shareholder approvals at extraordinary general meetings for the preferential allotment of shares to the Government.
The Finance Ministry has advised the public sector banks to come up with a fresh financial inclusion plan for the 2013-16 period.
In the earlier financial inclusion initiative that spanned 2010-2013, the number of rural banking outlets increased from 67,000 in 2010 to about 268,000 outlets by March-end 2013.
Meena said that the rising gross non-performing assets (GNPA) in public sector banks were a source of concern. But there is no reason to panic, he added.
As a percentage of advances, gross NPAs were at 3.17 per cent in March 2012. It had jumped to 3.84 per cent in March 2013 and 4.82 per cent as at end-September 2013.
srivats.kr@thehindu.co.in