Public sector lenders, Bank of Baroda and Union Bank of India are all set to receive capital infusion of Rs 4,376 crore from the government in the form of equity capital.

With this capital infusion, government stake in the banks would rise. The current government holding in Bank of Baroda is 53.81%.

Union Bank of India expects to receive infusion worth Rs 1,096 crore from the government.

In the first phase of recapitalisation, the government had infused capital in five banks in June 2010. These banks were Union Bank of India, Bank of Maharashtra , IDBI Bank , UCO Bank and Central Bank of India.

In the budget announcement for 2011-12, finance minister, Mr Pranab Mukherjee said, "I propose to provide a sum of Rs 6,000 crore for the year 2011-12 to enable Public Sector Banks to maintain a minimum Tier I Capital to Risk Weighted Asset Ratio (CRAR) at 8 per cent."