New Delhi: The government is likely to provide Rs 20,000 crore in funding to state-owned banks in the October-December quarter. An additional expenditure of Rs 2.35 lakh crore has recently been passed in Parliament. It is expected to provide Rs 20,000 crore to state-owned banks. The funds will be provided to the banks to meet the Reserve Bank’s capital needs. With the second quarter of the current fiscal year coming to an end, a picture of how much money will have to be paid to which government bank will come to the fore. Banks will be funded on this basis.Notably, there was no provision in the 2020-21 fiscal year budget to provide funding to state-owned banks. The government hoped that the banks would raise funds to meet their needs. However, in the 2019-20 fiscal, the government provided Rs 60,000 crore in funding for state-owned banks. Of this, Rs 1,901 crore was provided to PNBB, Rs 11,4 crore to Union Bank, Rs 4,561 crore to Canara Bank, Rs 2,536 crore to Indian Bank, Rs 2,153 crore to Allahabad Bank, Rs 17 crore to United Bank and Rs 200 crore to Andhra Bank. In addition, Rs 4,000 crore was disbursed to the Bank of Baroda, Rs 9,370 crore to IOB, Rs 2,172 crore to UCO Bank, Rs 4 crore to Punjab and Sind Bank, Rs 3,353 crore to Central Bank and Rs 7,556 crore to IDBI Bank.
