press trust of india, New Delhi, June 12: Finance minister Arun Jaitley Friday promised more capital infusion into public sector banks, saying there’s “merit” in their demand for more funds over and above what was provided in the Budget.
“Banks have made a strong case for additional capital… . And over the next few months, this is something the government is going to seriously look at,” Jaitley said after meeting heads of PSU banks here. “…I do believe it’s a case which has merit,” he said.
The government has earmarked Rs7,940cr in the Budget for recapitalisation of PSU banks for the current fiscal.
The statement assumes significance as the RBI deputy governor S S Mundra had Thursday said the Budget amount marked for recapitalisation of PSU banks is not adequate and Reserve Bank of India has asked the Finance Ministry to raise the quantum of assistance in view of mounting bad loans and support growth.
On additional quantum to be infused, Jaitley said “it’s only after discussions within the government and looking at our own abilities on the matter that your question can be answered”.
Last fiscal, the government infused Rs 6,990cr in nine public sector banks based on their performance.
