2.11 Lakh Crore Lifeline For Public Sector Banks

The Union government on October 24, 2017 launched an ambitious plan to confer Rs 2.11 lakh crore capital over the next two years into public sector banks (PSBs), saddled with high and non-performing assets.

At a press conference held by Finance Minister Arun Jaitley, the government will infuse Rs 1.35 lakh crore through recapitalisation bonds and Rs 76,000 crore through budgetary support and market raising.

Jaitley said the capital infusion will also be supplement with banking reforms, and outlined steps that the government has already taken in that direction. Secretary Kumar said banks are ready for a take-off due to strong economic fundamentals, and push to public investment in infrastructure and strengthening the country’s banking system will result in more jobs, growth and investments.