more-inThe government plans to come out with ‘Indradhanush 2.0’, a comprehensive plan for recapitalisation of public sector lenders, with a view to make sure they remain solvent and fully comply with the global capital adequacy norms, Basel-III. ‘Indradhanush 2.0’ will be finalised after completion of the Asset Quality Review (AQR) by the Reserve Bank, The review is likely to be completed by March-end. The central bank has set a deadline of March 2017 to complete the AQR exercise. 75% funds releasedIn line with the plan, public sector banks were given ₹25,000 crore in 2015-16, and a similar amount has been earmarked for the current fiscal. The government has already announced fund infusion of ₹22,915 crore, out of the ₹25,000 crore earmarked for 13 PSBs for the current fiscal.

Source: The Hindu February 12, 2017 16:07 UTC