Public sector banks namely Vijaya Bank, Central Bank of India, UCO Bank and United Bank of India will soon be receiving Rs. 1500 crore as capital infusion. This capital infusion is part of the recapitalization package that is to be provided to these and some more banks by the Government.

Capital infusion would enable the banks to comfortably maintain their capital adequacy ratio at a standard that is set by the RBI. Capital adequacy ratio (CAR) refers to the risk weighted ratio of assets calculated in percentage terms.

Vijaya Bank would be receiving Rs. 700 crore, UCO Bank Rs 300 crore, Central Bank and United Bank of India Rs 250 crore each out of the total amount.

In the last fiscal the Government had provided Rs 1,200-crore capital support to Central Bank of India, UCO Bank and United Bank of India to meet their capital requirement.

While Uco Bank and Central Bank received Rs. 450 crore each, United Bank of India received Rs. 300 crore.

The exact amount and the mode of capitalization would be decided while the infusion finally takes place after consultation with the bank.