The government will infuse 83000 crores in Public Sector Banks in the next few months in the current fiscal. Finance Minister Arun Jaitley said the recapitalisation will enhance the lending capacity of state-owned banks and help them come out of the RBI’s Prompt Corrective Action, PCA framework.
He further said recognition of non-performing assets in the public sector banks is complete, and the downside in bad loans has begun.
The government on Thursday moved proposal in Parliament for enhanced bank recapitalisation outlay from Rs 65 thousand crore rupees to one lakh six thousand crore rupees in the current financial year to propel economic growth.
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