Business Standard

India may need to pump Rs 1.5 trn into coronavirus-hit state banks: Report

"The situation is very grim," the source said, adding that banks would require fresh funds soon

banks
Premium

Indian banks were already saddled with Rs 9.35 trillion of non-performing assets at the end of September 2019, or roughly 9.1% of their total assets at the time

Nupur Anand and Manoj Kumar | Reuters Mumbai/New Delhi
India may need to inject up to Rs 1.5 trillion ($19.81 billion) into its state-owned lenders as their pile of soured assets is expected to double during the coronavirus pandemic, three government and banking sources told Reuters.
The government initially considered a budget of around Rs 250 billion for bank recapitalisations but that has risen significantly, a senior government source with direct knowledge of the matter said, with loan defaults likely to rise as businesses take a severe hit from nationwide lockdowns to tackle the coronavirus.
"The situation is very grim," the source said, adding that banks would require fresh funds soon.
All

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 27 2020 | 9:04 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com