Cabinet approves bank capitalisation plan of Rs 2.11 lakh crore over FY18-19

India Infoline News Service | Mumbai | October 25, 2017 08:33 IST

Union Finance Minister Arun Jaitley announced that the government would recapitalize public sector banks (PSBs) with Rs 2.11 lakh crore over the next two years

Union Finance Minister Arun Jaitley announced that the government would recapitalize public sector banks (PSBs) with Rs 2.11 lakh crore over the next two years. The recapitalization is expected to increase lending and investment and also create jobs, thereby improving the overall state of the economy.

According to details given by Jaitley and his team, the recapitalization -- besides the push of Rs 2.11 lakh crore over the next two years will entail budgetary provisions to the tune of Rs 18,139 crore as well as recapitalisation bonds worth Rs 1.35 lakh crore.

Once you strengthen banks, appetite for their stock will improve, says Finance Minister Arun Jaitley.

Among key important decisions to revive the economy, government also announced mega Rs 7 lakh crore road building project to develop more than 83,000 km of roads.

Under Indradhanush roadmap introduced in 2015, the government had announced to infuse Rs 70,000 crore in state-run banks over four years to meet their capital requirement in line with global risk norms, known as Basel-III. The finance minister also said banks would get Rs 18,000 crore under the Indradhanush plan.

FM Arun Jaitley held a press conference on Tuesday today. He added that the late fee which has been already paid will be credited back to the taxpayers' accounts. While the total CGST revenue stands at Rs 14,042 crore, the SGST and IGST revenue are Rs 21,172 crore and Rs 48,948 crore respectively.
 

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