Banks should act on willful defaulters: FM

India Infoline News Service | Mumbai |

The ministry has asked the public sector banks to meet their capital requirements by selling government equity and issuing bonds

The Ministry of Finance on Tuesday asked public sector banks to raise funds on their own, as it may not be in a position to allocate additional funds for recapitalisation in the coming Budget, according to a media report.
A provision of Rs 11,200 crore was made by the ministry in the interim budget, the report added.
The ministry has asked the public sector banks to meet their capital requirements by selling government equity and issuing bonds.
In addition to listing of non-core businesses such as insurance, mutual funds, etc, the ministry has also asked bank to bring down their costs.
The ministry further said that banks should act tough on wilful defaulters.
The finance ministry is considering the idea of a separate statute for high-value wilful defaulters with special courts and time-bound disposal.
 

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