The cabinet has approved a plan to infuse Rs 12,517 crore in state-run banks, Finance Minister P. Chidambaram told reporters on Thursday.
India's state-run banks are facing rising non-performing assets (NPA) and write-offs because of poor lending decisions.
Mr Chidambaram said the combined injection of capital would not exceed the Rs 15,000 crore provisioned in the budget for the fiscal year ending 2013, which is short of the banks' requirements.
Copyright Thomson Reuters 2013
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