- Experts say recapitalization of state-owned banks is critical for economic growth
- Sitharaman tables the first batch of supplementary demand for grants in the Parliament, reflecting additional expenses sought by various ministries beyond the budget allocations
State-run banks are poised to get ₹20,000 crore through recapitalization bonds this financial year, at a time the coronavirus crisis threatens to bump up bad loans across the banking system.
Finance minister Nirmala Sitharaman on Monday tabled the first batch of supplementary demand for grants in the Parliament, reflecting additional expenses sought by various ministries beyond the budget allocations.
It also indicates the spending appetite of the government.
“For meeting the expenditure towards recapitalization of public sector banks (PSBs) through issue of government securities— ₹20,000 crore,” the supplementary demand for grants document read. Capital infusion through the issue of government bonds will not impact fiscal deficit in the current financial year, as there is no cash outgo.
Source: livemint
