Photo: PTIMumbai: The finance ministry on Tuesday announced a Rs2.11 trillion bank recapitalisation plan for state-owned lenders weighed down by bad loans, seeking to stimulate the flow of credit to spur private investment. The bank recapitalisation would ensure genuine borrowers get adequate funding, said Rajiv Kumar, secretary in the department of financial services. Out of the total commitment, Rs1.35 trillion will come from the sale of so-called recapitalisation bonds. The bank recapitalisation package marks a sharp increase over the current budgetary allocation. Under the Indradhanush plan, the government has allocated Rs20,000 crore towards bank recapitalisation over the current and next fiscal years.

Source: Mint October 24, 2017 12:11 UTC