Govt to infuse Rs 20,000 cr in public sector banks; seeks parliamentary nod

The government has infused Rs 3.5 trillion in PSBs in the last few years, with the previous round of recapitalisation taking place in September 2019

The Union government may infuse Rs 20,000 crore through recapitalisation of bonds into state-owned banks in the fourth quarter of the fiscal year.

On Monday, the government sought Parliament nod for “meeting additional expenditure of Rs 20,000 crore towards recapitalisation of public sector banks (PSBs) through issue of government securities”.

Even as a senior government official said that the funds would be sufficient to take care of the capital needs of PSBs this fiscal year, experts feel otherwise. Reserve Bank of India (RBI) Governor Shaktikanta Das had said in July that a recapitalisation plan for banks had “become necessary” and called for