Regional Rural Banks to be strengthened

Shri Pranab Mukherjee, the Union Finance Minister has said that the Regional Rural Banks will be strengthened to enable them to maintain a Capital to Risk Weighted Asset Ratio (CRAR) of at least 9 per cent as on March 31, 2012. The Government will provide Rs. 500 crore to these banks during 2011-12, which received Rs. 350 crore during the current year for this purpose.

The Government would provide a sum of Rs. 6000 crore during 2011-12 to enable public sector banks to maintain a minimum Tier I CRAR at 8 per cent.

The Government has already been providing a sum of Rs. 20,157 crore for infusion in the public sector banks to maintain Tier I CRAR at 8 per cent and increase Government equity in some banks to 58 per cent.

Source : Equity Bulls

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