The Union Budget 2011-12 announced recently has opened doors to more capital support to public sector banks. The PSBs are to receive recapitalization worth Rs 6000 crore in the upcoming fiscal.

"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," Finance Minister Pranab Mukherjee said.

The current fiscal is offering capital infusion worth Rs 20,157 crore to PSBs so as to maintain their Tier I capital at 8%, said Mukherjee.

In the first round of infusion in June 2010, banks namely Union Bank of India, Bank of Maharashtra, IDBI Bank, UCO Bank and Central Bank India received capital support.

The second round announced recently would cover lenders like Corporation Bank, UCO Bank, Indian Overseas Bank and United Bank of India.

"I propose to provide Rs 500 crore during 2011-12 to enable them maintain a CRAR of at least 9 per cent as on March 31, 2012," he said.