The government has decided to infuse capital funds in the public sector banks, PSBs in the current and next fiscal to meet the credit requirements of the economy. The Cabinet at its meeting chaired by the Prime Minister Dr. Manmohan Singh has approved the decision to provide capital funds to the tune of 15 thousand crore rupees for the current year. The amount to be infused next financial year will be worked out in consultations with public sector banks based on their third quarter results. The infusion of 15 thousand crore rupees in the current financial year will enable the public sector banks to expand their credit growth by about one lakh 85 thousand crore rupees. According to an official release this additional availability of credit is likely to benefit employment oriented sectors specially Agriculture, Micro and Small Enterprises, Exports and Entrepreneurs in promotion of their economic activity which will be able to contribute substantially to the growth of the economy. The government feels that the PSBs have done a commendable job in meeting the credit requirements of the economy in the wake of recent global financial crisis. The decision of the government to infuse more capital is to ensure that the banking system does not suffer from capital inadequacy.