Government of India (GoI) announced recapitalisation of Public Sector Banks (PSBs) to the tune of ₹ 2.11 lakh crore in October 2017, through infusion of capital by the Government and raising of capital by banks from the markets. ₹ 88,139 crore was infused by the Government in PSBs during financial year (FY) 2017-18 after the recapitalisation announcement and provision of ₹ 65,000 crore has been made in the budget for the current financial year for infusion. Since the recapitalisation announcement till November 2018, PSBs have been recapitalised to the tune of ₹ 1,28,861 crore through infusion and mobilisation of capital from the market. Bank-wise details of capital infusion by the Government in FY 2017-18 and current FY 2018-19, up to 30.11.2018), are in the Annexure.

The benefits that have accrued to customers, include, inter alia, the following:

(i) increasing access to banking services from home and mobile through digital banking and enhanced customer ease

(ii) unprecedented financial inclusion ,Jan Dhan programme by the Government has enabled opening of bank accounts for millions of previously unbanked customer (about 33.46 crore such accounts have been set up as of 5.12.2018, with balance of about ₹ 84,800 crore) and allowing users to receive government subsidies (as DBT) and to access remittances, credit, insurance, and essentially being included financially, increased availability of loans upto ₹ 10 lakh to the non-corporate, non-farm small/micro enterprises under Pradhan Mantri MUDRA Yojana (PMMY),wherein a borrower can approach any of the lending institutions or can apply online through portal. (during FY 2017-18, 4.81 crore loans were sanctioned and in the current financial year, as on 7.12.2018, 2.81 crore loans MUDRA loans have been sanctioned.

(iii) increasing lending to MSMEs through time-bound automated processing and transparent status-tracking, with financially and technologically strengthened banks leveraging digitalised bank statements and income-tax and GST returns and according in-principle loan sanction within59 minutes, and

(iv) meet the production credit requirements of the farmers in a timely and hassle-free manner by introducing Rupay Kisan Credit Card

India’s global-rank for “getting credit” as per World Bank’s Ease of Doing Business Index has improved from 44 in 2016 to 22 in 2018.

Annexure

Capital Infusion by Government

Amounts in crore Rupee

S. No	Bank	2017-18	2018-19 (up to 30.11.2018)
1	Allahabad Bank	1,500	4,844
2	Andhra Bank	1,890	2,019
3	Bank of Baroda	5,375	-
4	Bank of India	9,232	-
5	Bank of Maharashtra	3,173	-
6	Canara Bank	4,865	-
7	Central Bank of India	5,158	2,354
8	Corporation Bank	2,187	2,555
9	Dena Bank	3,045	-
10	IDBI Bank Limited	12,471	-
11	Indian Bank	-	-
12	Indian Overseas Bank	4,694	2,157
13	Oriental Bank of Commerce	3,571	-
14	Punjab National Bank	5,473	8,247
15	Punjab and Sind Bank	785	-
16	Syndicate Bank	2,839	728
17	UCO Bank	6,507	-
18	Union Bank of India	4,524	-
19	United Bank of India	2,634	-
20	Vijaya Bank	1,277	-
21	State Bank of India	8,800	-

Source: PSBs

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

Recapitalisation of public sector banks to strengthen balance sheets and expand credit access for customers and small enterprises. Recapitalisation combined Government capital infusion and market mobilisation to restore PSB balance sheets and expand lending capacity; bank-wise infusion amounts for FY 2017-18 and up to 30.11.2018 are reported. Effects include greater digital access and financial inclusion via Jan Dhan, support for direct benefit transfers, expanded micro-enterprise lending under Pradhan Mantri MUDRA Yojana, accelerated MSME credit through automated digital processing and in-principle sanctions, and improved agricultural credit access via the RuPay Kisan Credit Card, contributing to a higher Ease of Doing Business ranking for getting credit.