The Rs 2.11 lakh crore package will be spread over two years, Finance Minister Arun Jaitley said.While Rs 1,35,00 crore will be in the form of front-loaded recapitalisation bonds, the remaining Rs 76,000 crore will be in the form of budgetary support. The banking sector has been neck-deep with with asset quality worries. Fitch Ratings estimates Indian banks will need $65 billion ( Rs 4.23 lakh crore) of additional capital by March 2019 to meet Basel III global banking rules. Moody's expects the top 11 state lenders alone will need nearly $15 billion (more than Rs 97,500 crore). Public sector lenders like Punjab National Bank, Andhra Bank, Syndicate Bank, and Oriental Bank gained between 4 and 8 per cent.

Source: Times of India October 24, 2017 12:33 UTC