The government so far has budgeted Rs 11,200cr for capital infusion into public sector banks in FY15, but this may not be sufficient to meet their capital requirements
The fiscal is likely to face pressure as demands for additional funds are already knocking at the government's door. CNBC-TV18 has learnt that the finance ministry is likely to seek Parliament's nod for additional spending of Rs 10,000-11,000cr for capital infusion into public sector banks in the current fiscal.
The government so far has budgeted Rs 11,200cr for capital infusion into public sector banks in FY15, but this may not be sufficient to meet their capital requirements. Hence, there could be a need for supplementary demand for grants.
In the meanwhile, finance ministry is likely to seek the Cabinet's nod to lower its stake to 52 percent in public sector banks, only towards the end of November. Significantly, the Cabinet nod will also include further capital infusion over a four-year period into these banks. Simultaneously, the revenue department has also raised a demand of Rs 16,000 cr as first tranche payment for CST arrears to state governments. Total unpaid arrears to states stand at Rs34,000 cr and the Centre has promised to pay at least one-third of this amount, if not more, to state governments as soon as possible.
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Finmin to seek Rs 10,000-11,000cr cap infusion in PSBs
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