While addressing the media on Tuesday, Finance Minister Arun Jaitley annouced a plan to revive the banking sector in the country.
While addressing the media on Tuesday, Finance Minister Arun Jaitley annouced a plan to revive the banking sector in the country.
FM Arun Jaitley told media that the government has given a go ahead to bank recap plan worth Rs 2.11 lakh crore, which includes Rs 1.35 lakh crore via bank recap bonds and Rs 76,000 crore from budgetary support and market loans.
At present the banking sector is in a bad shape crippling with NPAs and the latest announcement from the government is expected to cheer it up.
According to the latest data available, currently around 39 listed banks had collected Rs 8.35 lakh crore worth of NPAs.
Recognising the need for boost to economy Finance Minister Arun Jaitley said, "Government has conducted an extensive economic survey. We have had detailed consultation with Prime Minister on the state of the economy. We have decided on the steps needed to sustain the growth momentum."
Meanwhile, reacting to the government's recaptalisation announcement, SBI's newly appointed Chairman has said that it is a historic day for the banking sector and there would be a positive sentiment in the banking sector because of government's latest move.
Following are some of the highlights:
The Cabinet has approved an unprecedented Public Sector Bank capitalisation plan of Rs 2,11,000 crores.
- Various capital infusion measures taken by the government to ensure health of Public Sector Banks.
- Increased provisioning done by PSBs to cover expected losses, improving banks health.
- Post systematic Asset Quality Review, stressed assets have been recognised as Non-Performing Assets.
Public Sector Banks will catalyse private investmentCentre announces BharatMala road building programme. Under Bharatmala, the government aims to build over 20,000km of highways in the first phase.
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 "Banking Captalisation")
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