Nifty Tips: New Delhi: Government will soon infuse additional capital of about Rs 5,050 crore in some public sector banks including UCO Bank and Syndicate Bank this session.

Parliament has already approved Rs 5,050 crore for meeting additional expenditure on recapitalization of PSBs earlier this month.

The capital infusion by Finance Ministry in the established banks would be done soon, which may be as early as this week itself, sources said.

Syndicate Bank and UCO Bank will be issuing shares to the gov on a preferential basis to raise a total Rs 1,675 crore subject to regulatory consent.

UCO Bank said it will raise Rs 935 crore by issuing favored shares to the government while Syndicate Bank will be increase up to Rs 740 crore through favored allotment following board approval on 31 March.

Besides UCO and Syndicate, other lenders which are competitor for the fresh round of infusion are Central Bank of India, Oriental Bank of Commerce, Indian Bank, Vijaya Bank and United Bank of India.

It will be a part of the Rs 25,000 crore capital strain plan earmarked for the current fiscal.

In the 1st tranche, as many as 13 public sectors banks were given fund help of Rs 19,950 crore. Of this, SBI got the biggest amount of Rs 5,393 crore followed by Bank of India at Rs 2,455 crore.

Besides, the gov strain Rs 2,229 crore in IDBI Bank, Indian Foreign Bank Rs 2,009 crore and PNB Rs 1,732 crore.

Last year, the gov announced a revamp plan ‘Indradhanush’ to infuse Rs 70,000 crore in state-owned banks over 4 years, while they will have to raise a further Rs 1.1 lakh crore from markets to meet their capital necessity in line with global risk norms Basel-III.

In line with the plan, PSU banks will receive Rs 25,000 crore this fiscal and also in the next fiscal. Besides, Rs 10,000 crore each would be infused in 2017-18 and 2018-19.