The government decision to infuse Rs 2.11 lakh crore in public sector banks and spend Rs 14 lakh crore on infrastructure projects has received the thumbs up from India Inc.“The decision to invest in PSU (public sector undertaking) bank recapitalisation should result in increased lending, especially to the MSME (micro small and medium enterprises) sector,” said Pankaj Patel, president, Federation of Indian Chamber of Commerce and Industry (Ficci). Bank recapitalisation should also encourage banks to pass on the benefits of a lower rate of interest to investors and consumers. Announcement of recapitalisation of public sector banks (PSBs) to the tune of Rs 2.11 lakh crore along with a booster dose of Rs 14 lakh crore expenditure will prove to be a mega turnaround point for Indian economy which was tackling issues out of GST and demonetisation, said DS Rawat, Secretary General, Assocham. Besides, it would also generate jobs at informal levels of the economy and generate demand at the bottom of the pyramid. “These measures would surely set the stage for revival of the private sector investment,” said Rawat.

Source: Hindustan Times October 24, 2017 14:15 UTC