Photo: MintMumbai: The government’s mega recapitalisation plan for public sector banks is being touted as a win-win for all and has set these bank stocks on fire. Additionally, it gives much needed funds to public sector lenders for them to step up to the demand for loans from good-rated companies. In the spirit of fiscal prudence, off-balance sheet measures such as these recapitalisation bonds leave a bad taste. For the bond market, the supply load looks formidable with the additional Rs1.35 trillion worth of recapitalisation bonds. After all, they would have enough by way of recapitalisation bonds.

Source: Mint October 25, 2017 06:33 UTC