Government has decided to provide equity support to public sector banks (PSBs) to enable to maintain Tier I CRAR at 8% and also to those PSBs where Government of India’s holding is less than 58% to raise Government of India holding in these PSBs to 58%.

Modalities in this regard are being worked out.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Rajya Sabha today.

Equity support for public sector banks to preserve capital adequacy and restore minimum government ownership levels. Decision to provide equity support to public sector banks to preserve Tier One CRAR at 8% and to raise Government of India shareholding in banks where it is below 58%, with modalities and implementation mechanisms to be worked out by the administration.