Govt Turns Down Indian Bank Recapitalisation

Indian Bank recapitalisation is under threat with the government not willing to extend any financial assistance for bailing out public sector banks. In the absence of assistance, the bank might have to close down its foreign branches.

Sources told Business Standard that the government is of the opinion that the bank has shown impressive recovery in the last couple of years and can now do without any assistance.

At the review meeting convened by finance secretary Ajit Kumar here today, sources said, bank executives told the government that it would post net profits during the year.

The ministry expressed satisfaction over the performance of Indian Bank in the last two years but asked it to further expedite recovery of non performing assets which still constitute over 30 per cent of total advances. Sources said that the bank was also asked to be