The Governor of Reserve Bank of India,Urjit Patel on Wednesday said the Rs 2.11 lakh crore bank recapitalisation plan is a 'monumental step forward' in safeguarding India's economic future and a comprehensive policy would be put in place to address the challenges faced by the sector. Finance Minister Arun Jaitley yesterday announced that Rs 2.11 lakh crore would be infused in PSU banks over two years, of which Rs 1.35 lakh crore will be through recapitalisation bonds. Now, welcoming the government's decision, Patel said that a well-capitalised banking system is a pre-requisite for stable economic growth. Non-performing assets (NPAs) of banks have more than doubled to Rs 7.33 lakh crore in June 2017 from Rs 2.75 lakh crore in March 2015. Outlining the 'desirable features' of the recapitalisation package, Patel said the recapitalisation bonds will front-load capital injections while staggering the fiscal implications over a period of time.

Source: dna October 25, 2017 11:15 UTC