CURRENT AFFAIRS

Detailed explanation-1: -The government last provided capital support to banks in 2021–2022. It had earmarked ₹20, 000 crore for the recapitalization of PSBs through supplementary demands for grants. The government infused ₹3, 10, 997 crore to recapitalise banks during the last five financial years-from 2016–17 to 2020–21.

Detailed explanation-2: -Capital infusion. Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions.

Detailed explanation-3: -There are a total of 12 public sector banks in India today. These banks were nationalised and are currently run by the government.

Detailed explanation-4: -The markets must see value in the chosen banks to attract two or more buyers. Even as NITI Aayog suggested privatisation of the Central Bank of India and Indian Overseas Bank, the report recommends Indian Bank and Bank of Baroda as the two top choices for privatisation.

Detailed explanation-5: -In the Union Budget for FY22, he said, government’s intent to take up privatisation of two PSBs and approval of a policy of strategic disinvestment of Public Sector Enterprises (PSEs) was announced.