(PTI) Mumbai, Aug. 19: The Reserve Bank and the government will come up with a recapitalisation package for state-run banks, which have been hit by higher provisioning for mounting bad loans, RBI governor Urjit Patel said here today. Besides, he said, 86.5 per cent of gross NPAs are accounted for by large borrowers. "Higher provisioning requirements for NPAs and other factors will affect capital position of several banks, necessitating a higher re-capitalisation. The government has made a budgetary provision for pumping in Rs 75,000 crore into state-run banks for the four-year period ending March 2019. State-run banks, which sit on over 75 per cent of over Rs 8 lakh crore NPAs "will need to take haircuts on their exposures under any resolution plan agreed within or outside the IBC", he added.

Source: The Telegraph August 19, 2017 18:55 UTC