The government approved on Tuesday a state bank recapitalisation plan of Rs 2.11 trillion rupees ($32.43 billion) over the next two years, in a bid to clean banks’ books and revive investment in a slowing economy. Of the planned sum, recapitalisation bonds will account for Rs 1.35 trillion, while Rs 760 billion will come from budgetary support and equity issuance, said Rajiv Kumar, financial services secretary. Finance minister Arun Jaitley said the recapitalisation of state banks would be followed by a series of reforms. But they also account for a bulk of the record Rs 9.5 trillion ($145 billion) of soured loans. The government has just $3 billion left in its budget for bank recapitalisation.

Source: Hindustan Times October 24, 2017 12:22 UTC