Strengthening banking system, more capital to be injected in state-owned banks: Arun Jaitley

Gurugram, November 13: To nourish the banking system and encourage the economic growth, the government has decided to inject more capital in state-owned banks said the Finance Minister Arun Jaitley in PSB Manthan held at Gurugram in Haryana on Monday.

 

Addressing heads of state-owned banks at PSB Manthan Jaitley said that the government has decided to put in more capital from the Budget, through bonds and banks' equity expansion.He further added that the government wants a strong and healthy public sector banking system to intensify their ability to support growth and economy.

 

Jaitley said that the main focus of the banks is on supporting MSMEs. This sector creates jobs and also boosts the economy. So it should have an access to international finance or bond market.

The government had revealed astonishing Rs.2.11 lakh crore two-year roadmap to strengthen the Non-Performing Assets-hit Public sector banks. Non-performing assets of PSBs have increased to Rs.7.33 lakh crore as of June 2017, from Rs.2.78 lakh crore in March 2015.