On Tuesday, the government announced a Rs2.11 trillion recapitalisation package for public sector banks and Rs6.92 trillion of investment in the construction of roads. Several institutions and brokerages have forecast a recovery in economic growth in the second half of this fiscal. “It will help revive credit growth and generate employment. The bank recapitalisation plan is expected to free up banks to boost credit. According to Bank of America Merrill Lynch, bank recapitalisation will lower lending rates, spur aggregate demand, put idle factories to work, exhaust surplus capacity and spark investment in two-three years.

Source: Mint October 25, 2017 18:45 UTC