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How the bank recap will play out

Govt's plan will have little impact on its target to shrink the shortfall to 3.2% GDP in the year through March 2018

Anirban Nag | Bloomberg 

Prime Minister Narendra Modi’s administration will inject an unprecedented Rs 2.11 lakh crore into struggling state-run banks over the next two years, his biggest attempt to revive growth. Morgan Stanley is calling this India’s TARP — a reference to the US Troubled Asset Relief Program implemented in the throes of the financial crisis — and Indian stock markets welcomed the decision but bond investors were more circumspect. Here’s how it may roll out: Impact on fiscal deficit The government’s plan will have little impact on its target ...

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First Published: Thu, October 26 2017. 02:24 IST