Bank recapitalisation will boost lending: Arun Jaitley
Business | February 10, 2018 17:26 ISTThe government's plans to spend Rs 2.11 lakh crore to recapitalise PSBs in a major step to restore the banking system's health.
The government's plans to spend Rs 2.11 lakh crore to recapitalise PSBs in a major step to restore the banking system's health.
Observing that the government has not waived any loans of big NPA defaulters, he regretted that over the last few days, a rumour is being propagated about "waiver of loans of capitalists by banks".
Arun Jaitley last week said that there were multiple options before the government for recap bonds and they are being examined and the best ones would be explored.
The focus should not be lost on recovering bad loans by allowing the banks to write them off, says AIBEA.
The government, on Tuesday, announced a capital infusion of Rs 2.11 lakh crore in state-run banks over a period of two years.
Tuesday's big package announced by Arun Jaitley was meant to give a concrete reply to the naysayers.
Stocks in banking and infrastructure led the market rally on the government's Rs 9 lakh crore stimulus push.
Economic history had shown repeatedly that only healthy banks lend to healthy firms and borrowers, creating a cycle of investment and job creation.
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