Indradhanush Plan for revamping Public Sector Banks (PSBs), announced by the Government on 14.8.2015, envisaged capital infusion by the Government of ₹ 70,000 crore. Under Indradhanush, Government infused capital of ₹ 51,858crore, till the first half of the financial year (FY) 2017-18.

In October 2017, as a build up to the Indradhanush plan, with a view to address regulatory capital requirements, increase credit off-take and catalyse economic growth,Government has announced and initiated recapitalisation of PSBs to the tune of ₹ 2,11,000 crore, over the current and the next financial years, of which ₹ 1,53,139 crore is through infusion of capital by the Government (including ₹ 8,139 crore of the residual amount under Indradhanush envisaged for FY 2017-18). The balance is envisaged through capital raising by banks themselves from markets. As follow-up, Government has made Budget provisions of ₹ 88,139crorefor the second half of FY 2017-18 and ₹ 65,000 crore for FY 2018-19, and ₹ 7,750.06 crore has been infused as capital in the second half of FY 2017-18 (till 23.3.2018) from the said Budget provision for FY 2017-18.

This was stated by Shri Rajiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha.

Recapitalisation of public sector banks: government infusion plus market raising to meet regulatory capital needs and boost credit. Recapitalisation of Public Sector Banks combines direct government capital infusion and bank-driven market capital raising to meet regulatory capital requirements, increase credit off-take and catalyse economic growth; implementation uses earmarked budget provisions and tranche-wise injections by the Government while the balance is expected to be raised by banks from markets.