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<h1>Capital infusion to augment Tier 1 capital supports public sector banks in maintaining regulatory capital adequacy.</h1> Government proposes a targeted capital infusion to bolster Tier-1 capital in public sector banks to preserve regulatory capital standards and sustain solvency amid weak global recovery and domestic operational stress. The recapitalisation responds to rising provisioning needs and increased nonperforming assets, while PSBs continue to hold a dominant share of system assets and income.