The finance ministry will take a call on the residual Rs 14,500-crore capital infusion in the public sector banks (PSBs) in the fourth quarter of this fiscal, sources said.

Following the financial performance review after the first half, sources said it was found that Punjab & Sind Bank, out of the 12 PSBs, was in need of Rs 5,500 crore to meet the regulatory requirement.

So, the government approved capital infusion through the preferential allotment of equity shares in Punjab & Sind Bank last month.

The fund was approved from Rs 20,000 crore cleared by Parliament in September for capital infusion of PSBs as part of the first batch of Supplementary Demands for Grants for 2020-21. With Rs 5,500 crore going to Punjab & Sind Bank, the government is left with Rs 14,500 crore.

When the performance review post third-quarter numbers takes place, sources said, by that time banks would have a clear idea about the additional burden on them because of the one-time restructuring being undertaken to help the industry itself tide over the risks of default in the aftermath of the Covid-19 crisis.