The FM has synchronized the merger details with the cash infusion. In fact, the FM also announced the quantum of cash infusion into each of these banks. Here are the highlights to keep in mind.

· The latest cash infusion needs to be seen in the light of the amount that has already been infused. Between 2014 and 2019, the government has already infused Rs.225,000 crore into banks as capital infusion. In addition, this year the infusion is Rs.70,000 crore.

· In the latest cash infusion PNB will be the biggest beneficiary receiving Rs.16,000 crore, largely because of the capital shortfall post the Nirav Modi fraud.

· The second largest allocation will be to Union Bank of India which is going to get a capital infusion of Rs.11,700 crore.

· Effectively, PNB and Union Bank will take away 40% of the capital infusion announced in this budget with the other banks distributing the balance.

This capital infusion is expected to improve the underwriting standards at these banks, which has been a long-time concern. It will also push up the capital adequacy of most of the PSU banks.