Govt to infuse Rs 830 bn, take bank capitalisation to Rs 1.06 trn in FY 19

This would enhance the total recapitalisation in the current fiscal from Rs 650 billion to Rs 1.06 trillion

The government will infuse Rs 830 billion in state-owned banks to strengthen their capacity to lend, said Finance Minister Arun Jaitley on Thursday

The action will help the banks to come out of the Reserve Bank of India's Prompt Corrective Action (PCA) framework, Jaitley was quoted by news agency PTI as saying.

He said recognition of non-performing assets in the public sector banks is complete, and the downslide in bad loans has begun.

The government on Thursday sought Parliament's approval to infuse an additional Rs 410 billion in state-owned banks through the second batch of Supplementary Demands for Grants.

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