Banks expect additional allocation for capitalisation of PSBs in Budget: Survey

With India's banks reeling under stress on account of global challenges and rising non-performing assets, they expect some specific measures including additional budgetary allocation for capitalisation of public sector lenders in the Budget, a survey by business chamber Ficci and Indian Banks' Association showed.

The survey, conducted during January-February 2016, saw participation by 17 public, private and foreign banks. It highlights key operational areas of banks in India for the July-December 2015 period.

Most lenders recommended establishing a National Asset Management Company or a 'bad bank', which could take over stressed loans from them and either sell them off or revive them, the survey said.

Banks have also suggested an additional budgetary allocation for capitalisation of public-sector lenders over and above the original commitments.

According to the survey, the banks also want revamping of debt recovery tribunals and setting up of a fund to aid revival of stalled infrastructure and power discom projects.

The lenders expect the ceiling for tax deducted at source on interest on deposits to be increased to Rs 50,000 from Rs 10,000 now. They also expect tax exemptions for infra bonds to be reintroduced in the Budget.