RBI is working with the government to finalise the bank recapitalisation plan, which Urjit Patel termed as the ‘reform-and-recap package’. The central bank is working with the government to finalise the recapitalisation plan, which Patel termed as the “reform-and-recap package”. In October, finance minister Arun Jaitley had announced an unprecedented Rs2.11 trillion PSU bank recapitalisation plan to strengthen public sector banks. According to analysts, the government will assign larger portion of the recapitalisation package to the stronger banks to push up the credit growth. “Even as the government has shown its intent to help out banks with strong fundamentals, it is unlikely that it will leave out the weaker banks from the recapitalisation package completely.

Source: Mint December 06, 2017 13:33 UTC