Govt to infuse more capital in state-run banks: Jaitley

The minister said the government has taken a decision to put in more capital from the Budget, through bonds and banks' equity expansion.

The government will put in more money in public sector banks to strengthen the banking system and catalyse economic growth, Finance Minister Arun Jaitley said on Sunday. 
 
He was speaking to PSB chiefs at 'PSB Manthan' in Gurugram. 
 
An amount of Rs 2.11 lakh crore was infused, last month, into stressed PSU banks. The capital includes recapitalisation bonds, budgetary support and equity dilution.
 
The minister said the government has taken a decision to put in more capital from the Budget, through bonds and banks' equity expansion and "therefore, it is the country which is virtually going to pay to keep the banking system in good health".
 
"You won't find us interfering," he assured bankers. 
 
However, "when the system is making all these changes and all these monetary contributions in order to strengthen the banking system, we want robust public sector banking system so that your ability to support growth itself increases," Jaitley added.
 
Stressed assets of the state-owned banks have risen to Rs 8.29 lakh crore as of June 2017, as against Rs 6.18 lakh crore in the corresponding period last year.
 
The country's largest bank, SBI, is burdened with the largest amount - 23 per cent of total NPAs.
 
Source: TOI, media reports

Add new comment