QBullet: Govt to Inject Rs 2.1L Cr Into PSUs, Guj Poll Dates Today

76c998c40421db661cc71fe8a9338860

1. Govt Will Inject Rs 2.1 Lakh Cr to Strengthen Public Sector Banks

The government on Tuesday, 24 October, announced a fresh package to breathe life into ailing public sector banks through a Rs 2.11 lakh crore infusion that will provide them with much-needed share capital for lending and revive investment, crucial for job creation in the economy. Along with this, the government also unveiled a mega Rs 6.9 lakh road building programme aimed at boosting growth and creating jobs.

Describing it as a “bold and unprecedented” decision to strengthen public sector banks, Finance Minister Arun Jaitley told reporters that the injection, spread over two years, will be followed by a series of reform initiatives for the sector over the next few months.

Along with the equity infusion, the government also announced steps to provide funding to micro, small and medium enterprises — which were identified as a thrust area for bank lending.

The latest lifeline comes two years after Indradhanush, which was billed as a major revamp effort but was not sufficient to deal with the massive pile-up of bad loans that has hobbled state-run banks and hurt their ability to lend to help accelerate growth.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.