Rs 10,000 cr provided for bank recapitalisation

The central government has provided Rs 10,000 crore for recapitalisation of banks owned by it, Finance Minister Arun Jaitley said on Wednesday.

Presenting the budget in Parliament, Jaitley said: "I have provided Rs 10,000 crore for recapitalisation of banks in 2017-18. Additional allocation will be provided as may be required."

Jaitley said the government continues to focus on resolving the stressed loan assets of banks.

"The legal framework has been strengthened to facilitate resolution, through the enactment of the Insolvency and Bankruptcy Code and the amendments to the Sarfaesi and Debt Recovery Tribunal Acts," Jaitley said.

According to him, listing and trading of Security Receipts issued by a securitisation company or a reconstruction company under the Sarfaesi Act would be permitted in Sebi registered stock exchanges.

"This will enhance capital flows into the securitisation industry and will particularly be helpful to deal with bank NPAs (non performing assets)."

--IANS

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