India: Government to infuse INR200bn in India’s state-run banks

  • The government on 14 Sep 20 sought Parliament’s approval for infusing INR200bn in public sector banks in the current financial year to meet regulatory requirements.
  • This is part of the first batch of Supplementary Demands for Grants for 2020-21 moved by Finance Minister Nirmala Sitharaman in the Lok Sabha.
  • In all, the government has sought Parliament’s nod for additional spending of INR2.35tr, which includes a cash outgo of INR1.66tr, primarily to meet expenses for combating the COVID-19 pandemic.
  • In 2019-20, the government proposed to make INR700bn capital infusion into the Public Sector Banks (PSBs) to boost credit for a strong impetus to the economy.

External Link :