Bank recapitalisation outlay extended!
Government infuses Rs1,06,000 crore Instead of Rs 65K Crore Government moves to enhance bank recapitalisation outlay to Rs. 1,06,000 crore in the current financial year Government today moved proposal in Parliament for enhanced bank recapitalisation outlay from Rs. 65,000 crore to Rs. 1,06,000 crore in the current financial year to propel economic growth, cementing India’s position as the fastest growing economy of the world. This would enable infusion of over Rs. 83,000 crore in the coming few months in Public Sector Banks (PSBs). The enhanced provision is aimed at: (1) Meeting regulatory capital norms, (2) Providing capital to better-performing PCA Banks to achieve 9% Capital to Risk-weighted Asset Ratio (CRAR); 1.875% Capital Conservation Buffer and the 6% Net NPA threshold, facilitating them to come out of PCA. (3) Facilitating non-PCA banks that are in breach of some PCA thresholds to not be in breach, (4) strengthen amalgamating bank...