June 13, 2010 7:44 AM

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Govt approves infusion of 6211 crore rupees in five Public Sector Banks

Government today approved infusion of. 6211 crore rupees in five Public Sector Banks. This is the part of the budgetary promise to provide a sum of 16,500 crore to the Public Sector Banks to ensure better liquidity.According to an official press release 590 crore rupees are being infused in the Bank of Maharashtra , 2016 crore in Central Bank of India . 3119 crore in IDBI Bank , 375 crore in United Commercial Bank and. 111 crore rupees in the Union Bank of India.These banks will undertake the necessary regulatory formalities to obtain clearances from concerned agencies for infusion of this capital through designated routes.The release says that these Banks will be able to leverage this capital and lend an additional approximate amount of .77,637 crore rupees to the productive sectors of the economy giving a push to all round economic activity besides paying additional dividends and tax revenues to the Government.The Government has stipulated certain conditions as part of this capital infusion and would be closely watching the performance of these banks so that they continue to maintain the desired capital adequacy and achieve those conditions.Earlier also the government has approved a similar package.

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