In a major bid to boost flagging economic growth and increase bank credit flow, the Union Cabinet on Tuesday accorded approval for a massive recapitalisation plan for state-run banks worth Rs 2.11 lakh crore.
Of this amount, a sum of Rs 1.55 lakh crore will be raised through recapitalisation bonds, Financial Services Secretary Rajiv Kumar told reporters here following a meeting of the Cabinet.
Another Rs 76,000 crore would be available from budgetary support and raised through market borrowings, he added.
--IANS
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