The Government may infuse second round of capital into banks in February based on retail lending performance of banks.
Rajiv Takru, Financial Services Secretary, said, "Depending on bank performance in the schemes up to January 31, 2014, the Government will look to infuse additional funds into banks."
In the Union Budget in 2013, the Government had earmarked Rs 14,000 crore for capital infusion into banks.
Since the Government is the majority shareholder in almost all public sector banks, it infuses a certain amount of funds into banks every year.
If the Government infuses any additional amount into banks in February, it will be over and above the Rs 14,000 crore it has already infused earlier this year.
Takru, however, did not say how much the Government has earmarked for the second round of capital infusion.