Govt proposes Rs 70k-cr for PSU bank recapitalisation

Govt proposes Rs 70,00-cr for PSU bank recapitalization

In order to improve credit uptake, the Finance Minister Sitharaman in her Budget speech has proposed a Rs 70,000 crore capital infusion into PSU banks.

The Finance Minister said that non-performing asset (NPAs) recovery worth Rs 4 lakh crore has been done over the last four years and that NPAs went down by Rs 1 lakh crore in the last one year. “Provision coverage ratio is at its highest in 7 years and credit growth has improved to over 13%. The government has smoothly carried out consolidation reducing the number of public sector banks by 8. We have enabled 6 public sector banks out of PCA,” she said.

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