Finance Ministry Likely To Finalise Capital Infusion In State-Owned Banks By December

In this round of infusion, most of the banks would be getting growth capital for expanding their lending, particularly to MSMEs

PTI
The portrait of Mahatma Gandhi is displayed on Indian rupee banknotes in an arranged photograph (Photographer: Brent Lewin/Bloomberg)

The Finance Ministry is likely to finalise the second round of capital infusion for public sector banks towards the end of this month or early next month taking after into account the latest quarter's performance, sources said.

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The infusion was part of the remaining Rs 65,000 crore out of Rs 2.11 lakh crore capital infusion planned over two financial years. The government had announced the Rs 2.11 lakh crore capital infusion programme in October 2017.

As per the plan, the state-owned banks were to get Rs 1.35 lakh crore through re-capitalisation bonds, and the balance Rs 58,000 crore through raising of capital from the market.

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