Finance Minister Arun Jaitley Thursday said the government will infuse Rs 83,000 crore in public sector banks (PSBs) in the next few months of the current fiscal. Earlier today, the government sought Parliament’s approval for infusion of an additional Rs 41,000 crore in the PSBs state-owned banks through the second batch of Supplementary Demands for Grants. This would enhance the total recapitalisation in the current fiscal from Rs 65,000 crore to Rs 1.06 lakh crore. Jaitley said that the government’s recapitalisation plan for the PSBs will help them come out of RBI’s prompt corrective action.
Financial Services Secretary Rajeev Kumar informed that the Indian public sector banks recovered Rs 60,730 crore ($8.69 billion) of outstanding bad loans in the April-September 2018. He also said banks have raised Rs 24,440 crore from the market this fiscal year.