The government of India has infused INR229.2bn ($3.4bn) in capital into 13 cash-strapped public sector banks in the country.

Out of the total cash injection, the largest chunk of INR75.8bn was allocated to State Bank of India (SBI).

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Indian Overseas Bank was allocated INR31bn, Punjab National Bank (INR28.1bn), Bank of India (INR17.8bn), Central Bank of India (INR17.29bn), Syndicate Bank (INR10.34bn) and UCO Bank was provided INR10.33bn.

Indian Overseas Bank was allocated INR31bn and Punjab National Bank received INR28.1bn. Bank of India, Central Bank of India, Syndicate Bank and UCO Bank were allocated INR17.8bn,  INR17.29bn, INR10.34bn, INR10.33bn respectively.

Capital support was also provided to Canara Bank (INR9.97bn), United Bank of India (INR8.1bn), Union Bank of India (INR7.21bn), Corporation Bank (INR6.7bn), Dena Bank (INR5.94bn) and Allahabad Bank (INR440m).

The ministry of finance in a statement said: “In line with the announcements made under Indradhanush and the Union Budget, Government has undertaken an exercise to assess the capitalization needs of Public Sector Banks during the year 2016-17. 

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“The capital infusion exercise for the current year is based on an assessment of need as assessed from the CAGR of credit growth for the last five years, banks’ own projections of credit growth and an objective assessment of the potential for growth of each Public Sector Bank.

The finance ministry will release 75% of the funds immediately to offer liquidity support for the banks’ lending operations and allow banks to raise funds from the market. The remaining capital will be released based on performance of the banks.