Following the Government's decision to infuse capital into PSU banks, these banks can look forward to enhance their credit ratings.

The government has decided to infuse Rs 620 crore capital in public sector banks.

Five banks would be receiving capital infusion of Rs 620 crore as of now. These banks include UCO Bank, IDBI Bank, Central Bank, Bank of Maharashtra and Union Bank.

This capital is in addition to Rs 150 crore that the Government has already infused into four banks in May 2010.

"The announcement reinforces the strong expectation of government support," said rating firm Crisil.

Crisil estimates that as on September 30, 2010, all 27 PSBs will have an overall capital adequacy ratio (CAR) in excess of 12%.

"Clearly, these measures reflect GoI's commitment to ensuring that PSBs remain well capitalised even during phases of strong growth," an official release by Crisil said.