The government will infuse Rs 830 billion in state-owned banks to strengthen their capacity to lend, said Finance Minister Arun Jaitley on Thursday
The action will help the banks to come out of the Reserve Bank of India's Prompt Corrective Action (PCA) framework, Jaitley was quoted by news
agency PTI as saying.
He said recognition of non-performing assets in the public sector banks is complete, and the downslide in bad loans has begun.
The government on Thursday sought Parliament's approval to infuse an additional Rs 410 billion in state-owned banks through the second batch of Supplementary Demands for Grants.
This would enhance the total recapitalisation in the current fiscal from Rs 650 billion to Rs 1.06 trillion.
The recapitalisation, Jaitley told reporters, will enhance the lending capacity of state-owned banks and help them come out of the RBI's Prompt Corrective Action (PCA) framework.
Jaitley further said recognition of non-performing assets in the public sector banks is complete, and the downslide in bad loans has begun.