The government announced on Friday that it would infuse Rs 55,250 crore into state-run banks to encourage lending and to ensure regulatory compliance of merged lenders.
Earlier, the government had announced merger of 10 state-run banks to form four large banks. Under this, Punjab National Bank (PNB), Oriental Bank of Commerce and United Bank will be constituted as the second largest government bank in the country. At the same time, Canara Bank and Syndicate Bank will be combined to form the fourth largest government bank.

According to Finance Minister Nirmala Sitharaman, Punjab National Bank gets Rs 16,000 crore, Union Bank Rs 11,700 crore, Canara Bank Rs 6,500 crore, Indian Overseas Bank Rs 3,800 crore, Central Bank of India Rs 3,300 crore under the Capital Infusion Plan. , Bank of Baroda Rs 7,000 crore, Indian Bank Rs 2,500 crore, UCO BankRs 2,100 crore, Rs 750 crore will be given to Punjab and Sindh Bank and Rs 1,600 crore to United Bank of India.
Bank of Baroda was not included in the merger announced on Friday. But that too, Capital Infusion has been announced.
The Finance Ministry had given Rs 1.06 crore for the recapitalization of banks in the last financial year, against the budgetary target of Rs 65,000 crore.Sitharaman also said that there has been a record recovery of loans owed by public sector banks, which stood at Rs 1.21 lakh crore.