<h1>Government Injects Additional Rs. 6000 Crore into PSBs to Boost Lending and Maintain Tier I CRAR of 7.</h1> The Cabinet approved an additional Rs. 6000 crore for Public Sector Banks (PSBs), supplementing the Rs. 15000 crore allocated in the 2010-11 budget, to maintain a Tier I Capital to Risk Weighted Assets Ratio (CRAR) of 7% and increase government holdings in PSBs to 58%. This capital infusion aims to enhance PSBs' lending capacity, supporting sectors like agriculture and small enterprises, thus boosting economic growth. During the financial crisis, PSBs significantly contributed to credit extension. The government targets a 12% total CRAR with 8% Tier I Capital, facilitating further market capital access without government dependency.