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Govt to inject more capital in PSBs to strengthen banks, economy: Jaitley

Non-performing assets of PSBs have increased to Rs 7.33 lakh crore as of June 2017, from Rs 2.78 lakh crore in March 2015

Press Trust of India  |  Gurgaon 

Finance Minister Arun Jaitley
Finance Minister Arun Jaitley

Minister Sunday said the has decided to inject more capital in state-owned to strengthen the system and spur economic growth.

Last month, the had unveiled a staggering Rs 2.11 lakh crore two-year road map to bolster NPA-hit public sector banks, which includes recapitalisation bonds, budgetary support and equity dilution.


Addressing heads of state-owned at 'Manthan' in Gurgaon, said the has decided 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 system in good health".

The minister assured the bankers who gathered here that "you won't find us interfering" in commercial transactions, but "when the system is making all these changes and all these monetary contributions in order to strengthen the system, we want robust public sector system so that your ability to support growth itself increases".

He further said one of the focus areas have taken up is to support MSMEs because the sector creating jobs and giving boost to the economy has no access to international or bond market.

told the bankers that the is spending a lot of public money and is coming in.

"...we need the third engine also to fire and a robust private sector, sector so that optimum growth rate which we have the potential for can be reached," he said.

Non-performing assets of PSBs have increased to Rs 7.33 lakh crore as of June 2017, from Rs 2.78 lakh crore in March 2015.

In the last three-and-a-half years, the pumped in more than Rs 51,000 crore capital in public sector

First Published: Sun, November 12 2017. 16:23 IST
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