Govt to infuse Rs 229.15 billion in public sector banks

In 13 state-run banks in FY17

India will infuse Rs 229.15 billion ($3.41 billion) in 13 state-run banks in the financial year ending on March 2017, the finance ministry said in a Twitter post on Tuesday.

New Delhi has plans to inject Rs 700 billion in state lenders over four years to March 2019. For the current financial year, Finance Minister Arun Jaitley has budgeted Rs 250 billion for bank recapitalisation.
 

Rs.22, 915 crore allocated for the capitalization needs of Public Sector Banks during the year 2016-17 https://t.co/u4h0PlENIE

— Ministry of Finance (@FinMinIndia) July 19, 2016

State-run banks, however, face much bigger capital requirements to meet Basel III rules and cover for a surge in bad loans. Rating agency Fitch estimates they would need $90 billion in capital infusion.

($1 = Rs 67.1400)