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.