The government Wednesday decided to recapitalise 12 public sector banks with Rs 48,239 crore. Rajeev Kumar, Secretary, Department of Financial Services, Ministry of Finance tweeted the announcement. The approval also includes fraud-hit Punjab National Bank.

The banks which will receive funds under the recapitalisation plan of the government are Allahabad Bank which will receive Rs 6,896 crore, Union Bank which will receive Rs 4,112 crore, Bank of India will receive Rs 4,638 crore, Bank of Maharashtra will receive Rs 205 crore, Corporation Bank will receive Rs 9,086 crore, Andhra Bank to receive Rs 3,256 crore, Syndicate Bank to receive Rs 1,603 crore, Punjab National Bank to receive Rs 5,098 crore and Central Bank of India to receive Rs 2,560.

The government will also infuse Rs 2,839 crore in United Bank and Rs 3,330 crore in UCO Bank.

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The shares of many PSU banks closed higher on stock markets due to buying interest in them following the government's plan to recapitalise banks with funds to help them finance their growth plans and maintain regulatory capital requirements.