Govt assessing recapitalisation needs of PSU banks

Govt allocated Rs 10k cr for current financial yr as against Rs 25k cr in last two financial yrs

The government is re-assessing recapitalisation requirement of the state-owned banks reeling under stressed assets worth Rs 6 lakh crore with tougher norms, a key official said on Monday.

The government has signed tri-partite memoranda of understanding (MoUs) with state-owned banks along with the trade unions for the first time in decades with stricter qualifying norms for banks to receive new recapitalisation funds.

The government has allocated Rs 10,000 crore for the current financial year to recapitalise banks as against Rs 25,000 crore allocated in last two financial years. The agreement includes austerity measures as well as lowering of non-performing assets. Besides, the