To guarantee an additional Rs. 77, 637 crore in lending ability to various sectors of the economy, and to help in achieving a minimum 8% Tier-I capital by March 31, 2011, the Centre has permitted capital infusion of Rs. 6,211 crore in five public sector banks.

IDBI Bank, Central Bank of India, Bank of Maharashtra, UCO Bank and Union Bank of India are the five banks lined up for concoction of fresh capital, according to the statement.
The statement also said: “The five banks would be able to leverage this capital and lend an additional approximate amount of Rs. 77,637 crore to the productive sectors of the economy, giving a push to all round economic activity, besides paying additional dividends and tax revenues to the government”.

By way of the Centre contributing its rights issue, the Central Bank of India is predicted to account for Rs. 2,016 crore while the IDBI Bank will collect the lion's share of Rs. 3,119 crore through privileged placement of equity, out of the total Rs. 6,211-crore capital.

Of the balance amount, UCO Bank will get Rs. 375 crore, Bank of Maharashtra Rs. 590 crore and Union Bank of India Rs. 111 crore, through the issuance of permanent non-cumulative predilection shares to the Centre.

The statement says that with effect to this sanction, the Government's overall capital infusion during the last four months works out to Rs. 8,911 crore, the maximum in public sector banks in modern times.

The five banks will now have to embark on the essential regulatory paperwork to attain clearances from the agencies apprehensive for infusion of capital.