WION Web TeamNew Delhi, Delhi, IndiaJan 04, 2018, 08.41 AM
The Centre on Thursday tabled a demand seeking additional grants of Rs.80,000 crore for bank recapitalisation.
The first tranche under the funding programme was tabled in the Lok Sabha by Minister of State for Finance P.P. Chaudhary.
It was sanctioned by Union Finance Minister Arun Jaitley.
The supplementary grant is being sought to meet the expenditure towards recapitalisation of public sector banks (PSBs) through the issue of government securities.
Currently, the banks are reeling under non-performing assets (NPAs) which had increased from Rs 2.75 lakh in March 2015 to Rs 7.33 crore in June 2017.
Earlier in October, the Finance Minister Jaitley announced an unprecedented PSB recapitalisation program of Rs. 2.11 lakh crore, out of which Rs. 1.35 lakh crore will come from recap bonds, and rest from markets and budgetary support.
Jaitley also stated that there is a need to increase public investment and bold steps will be taken by the government to recapitalise banks in the country.