Govt sanctions Rs2,000 crore capital infusion for few banks

The capital infusion would result in raising tier I capital or equity capital of the banks. Besides, the capital infusion would result in enhancing government’s stake in the select banks

New Delhi: The government has decided to sanction Rs2,000 crore to some public sector banks as part of its recapitalisation drive, reports PTI.

“We are in the process of sanctioning Rs2,000 crore to a few public sector banks, but the disbursement would take place at later date,” official sources told PTI.

The mode of disbursement would be decided later, sources said, adding, the capital infusion would result in raising tier I capital or equity capital of the banks. Besides, the capital infusion would result in enhancing government’s stake in the select banks, sources said.

This is part of the Rs6,000 crore re-capitalisation amount for the public sector banks announced in the Budget this year.

Finance minister Pranab Mukherjee in his Budget speech had said, “During the year 2010-11, the government is providing a sum of Rs20,157 crore for infusion in the public sector banks to maintain Tier I Capital to Risk Weighted Asset Ratio (CRAR) at 8% and increase government equity in some banks to 58%.”

“I propose to provide a sum of Rs6,000 crore for the year 2011-12 to enable public sector banks to maintain a minimum tier I CRAR at 8%,” he said.

Most of the public sector banks got capital support from the government during the last fiscal. These banks included Punjab National Bank, Bank of Baroda, Union Bank of India, Oriental Bank of Commerce, UCO Bank and Dena Bank.

In the first phase of recapitalisation in June last year, the government had approved capital support of Rs6,211 crore into five banks. The banks, which had got capital from the government included Union Bank of India, Bank of Maharashtra, IDBI Bank, UCO Bank and Central Bank India.

The remaining Rs13,946 crore was disbursed by March 2011 through mostly preferential allotment of equity.

All the public sector banks have already submitted to the government their capital requirement. The bank has requested the government capital infusion of Rs990 crore to fund its business growth, Punjab & Sind Bank executive director PK Anand said.

“We have requested the government to infuse additional capital of Rs990 crore by way of preferential shares,” MrAnand had said earlier this month.

Mangalore-based Corporation Bank has also sought Rs300 crore capital support from the government.


Hazare admitted in Gurgaon’s Medanta hospital for check-up

“We will also conduct tests of his kidneys, liver and other vital organs to check for any damage,” Dr Naresh Trehan said, adding the 74-year-old will be discharged only after his condition is fit

Gurgaon: Social activist Anna Hazare was on Sunday admitted in Medanta Medicity hospital here for a check-up soon after he ended his 12-day fast on the Lokpal issue and doctors said he will be under strict observation though there was no reason for worry, reports PTI.

“He has been admitted. He is resting. His blood pressure is 110/70 and pulse rate is 94. We are closely monitoring his condition because he has lost 7.5kg in a very short interval of time and in his age,” Dr Naresh Trehan, chairperson and managing director of the hospital said.

However, he said, “There is no need to worry as all vital organs are settled. We have put him on liquid diet for at least 48 hours that includes coconut water and honey.

“We will also conduct tests of his kidneys, liver and other vital organs to check for any damage,” Dr Trehan said, adding the 74-year-old will be discharged only after his condition is fit.

Police had a tough time controlling the crowds to make way for the vehicle that brought Mr Hazare to the hospital from Ramlila Maidan as the Gandhian’s supporters carrying bouquets thronged the road to catch his glimpse.

It took about 30 minutes for the police to clear the way for Mr Hazare, who was accompanied by his close aides Arvind Kejriwal and Manish Sisodia among others.

Some of the supporters even demanded that the Gandhian come out of the vehicle for a few minutes so that they can touch his feet to seek his blessings, eyewitnesses said.

Throughout his fast at Ramlila Maidan, a team of doctors led by cardiologist Dr Trehan had been monitoring his health. “He may stay in the hospital for a couple of days,” one of the team doctors said.

“The body always has reservoirs to help you sustain during fasting but that is when someone is young. At his age the reservoirs are not the same as that of a youngster so he is under strict observation,” Dr Trehan said.

“We have started his liquid diet. After this, we will slowly move towards semi-liquid diet and solid diet thereafter, he said.

Earlier in the day, Mr Hazare broke his fast that began on 16th August by taking coconut water mixed with honey offered by two girls on the dais at Ramlila Ground in Delhi after the government agreed to his demands to legislate a tough law against corruption.


Anna to end fast tomorrow after Parliament’s action



Reacting to Parliament’s action after Union minister Vilasrao Deshmukh handed over the prime minister’s letter, Anna Hazare announced to the cheering crowds in Ramlila Maidan, “I wish to break my fast tomorrow at 10am”

New Delhi: Social activist Anna Hazare will end his 12-old- day fast at 10am Sunday after Parliament today endorsed in principle three of his key demands to deal with corruption in a compromise between government and the Gandhian, reports PTI.

Both Lok Sabha and Rajya Sabha went out of their way to discuss in a special sitting on Saturday an issue thrown up by the campaign of the 74-year-old activist who has been demanding enactment of Jan Lokpal for which he started a fast from 16th August.

There was confusion at the end of the day-long debate in both the Houses as Parliament was expected to vote a resolution.

Originally conceived as a resolution, Parliament converted its agreement on three issues raised by Mr Hazare—citizen’s charter, lower bureaucracy under Lokpal through an appropriate mechanism and establishment of Lokayukta in the states—and to remit them to the Parliamentary Standing Committee for giving its recommendations.

In his communication to Mr Hazare, prime minister Manmohan Singh conveyed to him that Parliament has passed a resolution on the three issues raised by him and appealed to him to call off his fast.

Reacting to Parliament’s action after Union minister Vilasrao Deshmukh handed over Mr Singh’s letter, Mr Hazare announced to the cheering crowds in Ramlila Maidan that “I wish to break my fast tomorrow at 10am”.

“This victory of Jan Lokpal bill is a partial victory. A full victory is yet to be achieved,” he said while noting that Parliamentarians have respected his three demands.

“I congratulate them and express my gratitude to all MPs,” he said as celebrations broke out at the protest venue with crowds setting off fire crackers and dancing to the beating of drums and tunes of Lokpal anthem.

Mr Deshmukh was accompanied by Congress general secretary Vilas Muttemwar and East Delhi MP Sandeep Dikshit.

After Parliament expressing its ‘sense’, the prime minister said, “Parliament has spoken. The will of Parliament is will of the people.”

The rare action of Parliament came after major political formations Congress and BJP got together in a bid to end the stalemate arising out of Mr Hazare’s campaign against corruption.

In the debate in both the Houses, the main opposition backed the government’s stand seeking its help on discussing the three key demands of Mr Hazare.

There was unanimity that Constitution was supreme and Parliamentary procedures supremacy in law making cannot be questioned.

Though Mr Hazare’s commitment on anti-corruption was appreciated, a number of speakers attacked the statements made by his campaign managers on political parties, politicians and sometimes Parliament itself.

Pranab Mukherjee, finance minister and the government’s chief negotiator said he was happy that the impasse has been resolved which was created by fasting of Anna Hazare.

Winding up the day-long debate, Mr Mukherjee said while a ‘respected’ Gandhian with ‘massive support’ was on agitation, it was not always necessary to move in a ‘conventional straight jacket way’.

After the ‘Sense of the House’, Mr Mukherjee said “I do feel that on the basis of that, we can request Shri Anna Hazare to end his fast so that the so-called conflict between civil society, Parliament or political parties ends.”

He asserted that Parliament was supreme and law-making was its domain alone while others could give suggestions.

Setting tone for the debate, Mr Mukherjee said the country was at ‘cross-roads’ and asked lawmakers to give their serious and considered views on the ‘important’ and ‘genuine’ issues raised by Mr Hazare.

“For, everything that we do must be consistent with the principles enshrined within our Constitutional framework,” he said.

Mr Mukherjee said the situation was ‘moving out of hand’ and a ‘crisis’ had been created as he asked lawmakers to “seize the moment and demonstrate the commitment” in dealing with corruption which is “gnawing at the vitals of our polity”.

The BJP gave ‘consent’ to all the three issues under consideration of the two Houses.

“Sorry, we cannot go beyond a certain point. Legislation is the domain of legislators. Nobody other than Parliament can make a law. Others can give suggestions. Executive powers is also limited in making laws...Parliament alone can make law,” he said.

He questioned demands for withdrawal of the government’s Lokpal Bill, currently with the Standing Committee. “You have every right to criticise. What is the argument and justification for this demand for withdrawal of this bill?”

Referring to the government’s engagement Hazare team, he said, “We tried to convince them. I admit we have failed. We could not carry conviction with them. Neither I have intention to score a debating point nor do I have intention to contradict anyone.”

Mr Mukherjee said, “If we want to get back the confidence of people, we shall have to ensure that premier institutions should function as per norms and rules. If we do, many issues will be corrected automatically.”

Hailing the Constitution which has been described as the biggest ‘Magna Carta’, he said, “It is our responsibility to abide by the Constitution so that there is no conflict with the desire of our masters, so that there is no conflict. Our constitution is flexible enough to accommodate various ideas, it can accommodate various thoughts.”

In the Lok Sabha, leader of the opposition Sushma Swaraj said, “History has given us an opportunity, which we should not miss. Let us not get into technicalities. We should give this country an effective, strong, free and impartial Lokpal.”

Leader of the opposition in the Rajya Sabha Arun Jaitley said BJP finds considerable merit in Hazare’s three demands, including covering entire bureaucracy and Citizens’ Charter for public grievances under Lokpal and setting up Lokayuktas in states.

Maintaining that there should be no conflict with the Constitution and it was the responsibility of MPs to abide by the Constitution, the finance minister asserted in Parliament that legislation is the domain of the Parliament alone.


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