The government today said it will take a decision to infuse around Rs 16,500

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crore capital in the public sector banks by the end of next month.

The government is expected to take view on public sector banks' recapitalisation by April-end, Financial Services Secretary R Gopalan said on the sidelines of an event organised by FICCI.

"We are looking at what is the credit flow (of various public sector banks) at the end of March...After that we will look at Capital to Risk (Weighted) Assets Ratio (CRAR) then Tier1 (capital). Although, number would flow at the result of what is the traded outstanding as on March 31, 2010," he said.

Last month, the government announced to give financial assistance of Rs 16,500 crore to the 16 state-owned banks for shoring up their capital base.

While presenting the Budget, Finance Minister Pranab Mukherjee had said, "An additional sum of Rs 1,200 crore is being infused now. For the year 2010-11, it is proposed to provide a sum of Rs 16,500 crore to ensure that the public sector banks are able to attain a minimum 8 per cent tier-I capital by March 31, 2011."

The government infused Rs 1,900 crore in 2008-09 as tier-I capital in four public sector banks to maintain a comfortable level of capital to risk weighted asset ratio, Mukherjee had said.