NEW DELHI, July 19: Indian Bank may not get more than Rs 1000 crore as recapitalisation fund during the current financial year.According to sources in the department of banking, the exact amount will be decided after presentation of the revival package by the bank management. However, capital infusion was unlikely to exceed Rs 1000 crore, the sources said.Indian Bank, on its part, has finalised a revival package which envisages capital infusion of Rs 1,600 crore during the current financial. The bank needs as much as Rs 2,100 crore of capital infusion for a turnaround.The banking department has agreed for a capital infusion of Rs 300 crore in the case of Uco Bank. This was decided after the Uco Bank management presented a revival plan to the banking department.Officials pointed out that in the case of Indian Bank, the requirement would be much more. However, the finance ministry, sources said, would carefully weigh the revival package before determining the exact amount of recapitalisation.Sources said for capital infusion, the government will have to seek the permission of Parliament and due care has to be taken before approaching the House. The permission of Parliament will be sought in the form of supplementary demands for grants during 1997-98. The recapitalisation drive of the government, initiated by former finance minister Manmohan Singh as part of the reforms in the financial sector, has drawn flak from the standing committee on finance. This has made the finance ministry more cautious.Earlier, the finance ministry used to specify the recapitalisation funds in the budget itself.
