<p>In 2010-11, the government is providing Rs 20,157 crore for infusion in public sector banks to maintain Tier I CRAR at 8 per cent and increase the government equity in some banks to 58 per cent.<br /><br />In the last Budget, it was announced that the RBI would give banking licences to private sector players, he said. Various entities like Reliance Capital, IndiaBulls, Religare, IL&FS, IDFC, IFCI and Aditya Birla Financial Services are reported to be mulling entering the banking space. <br /><br />The Budget also said it will provide capital support to the tune of Rs 6,000 crore to public sector banks during the next fiscal to strengthen their capital base. <br /><br />As part of recapitalisation exercise, the government approved infusion of Rs 6,211 crore into five banks in June 2010. <br /><br />Banks, which had got capital support from the government in the first tranche included Union Bank of India, Bank of Maharashtra, IDBI Bank, UCO Bank and Central Bank India.<br />The second tranche, announced earlier this month, also provided capital support for several public sector banks, including Corporation Bank, UCO Bank, Indian Overseas Bank and United Bank of India.<br /><br />In addition, he also announced the recapitalisation of Regional Rural Banks (RRBs). The finance minister also said housing loan up to Rs 25 lakh will be treated as prisority sector lending. <br /><br />Builders, however feel that this stipulation may not help much as in most cities houses cost more than Rs 25 Lakh. <br /><br />The finance minister also said in his Budget speech that a legislation will be introduced in the current session to ammend regulations.</p>
<p>In 2010-11, the government is providing Rs 20,157 crore for infusion in public sector banks to maintain Tier I CRAR at 8 per cent and increase the government equity in some banks to 58 per cent.<br /><br />In the last Budget, it was announced that the RBI would give banking licences to private sector players, he said. Various entities like Reliance Capital, IndiaBulls, Religare, IL&FS, IDFC, IFCI and Aditya Birla Financial Services are reported to be mulling entering the banking space. <br /><br />The Budget also said it will provide capital support to the tune of Rs 6,000 crore to public sector banks during the next fiscal to strengthen their capital base. <br /><br />As part of recapitalisation exercise, the government approved infusion of Rs 6,211 crore into five banks in June 2010. <br /><br />Banks, which had got capital support from the government in the first tranche included Union Bank of India, Bank of Maharashtra, IDBI Bank, UCO Bank and Central Bank India.<br />The second tranche, announced earlier this month, also provided capital support for several public sector banks, including Corporation Bank, UCO Bank, Indian Overseas Bank and United Bank of India.<br /><br />In addition, he also announced the recapitalisation of Regional Rural Banks (RRBs). The finance minister also said housing loan up to Rs 25 lakh will be treated as prisority sector lending. <br /><br />Builders, however feel that this stipulation may not help much as in most cities houses cost more than Rs 25 Lakh. <br /><br />The finance minister also said in his Budget speech that a legislation will be introduced in the current session to ammend regulations.</p>