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Government Intervenes: Plans To Recapitalise Banks To The Tune Of Rs 42,000 Crore By March 2019
PM Modi with FM, Arun Jaitley. (Hemant Mishra/Mint via Getty Images)
The government will spend the next tranche of its Public Sector Banks (PSB) recapitalisation scheme into the respective banks by next month (December 2018) and a total infusion of Rs 42 thousand crores will be made by March 2019, Business Standard has reported .
In October 2017, the government announced that it would undertake re-capitalisation of PSBs which were reeling under financial stress due to the rise in Non-Performing Assets (NPAs). This plan would help PSBs meet minimum regulatory capital requirements (like Basel III norms) and provide them with a war chest to undertake further lending, thereby boosting economic growth.
It was earlier reported that though Reserve Bank of India (RBI) has deferred the deadline to comply with Basel III capital norms to March 2020, the government is still going to stick to the capital infusion plan, to strengthen the Indian banking system.
Also Read: A Speech PM Modi Could Make On Banking Reforms
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