NEW DELHI: The finance ministry is within the process of changing the nuts and bolts of the Rs 1.35 lakh crore recapitalisation bonds for public banks and the framework is predicted to get nod from the finance minister in the following couple of days, stated legit assets.
The Department of Financial Services, in session with the Reserve Bank of India, has submitted proposals to the Department of Economic Affairs, which is working on the ultimate structure, a central authority legit stated, including that the final structure will likely be known in the following couple of days after approval from the finance minister.
The framework as soon as cleared will move to Parliament for necessary approvals, every other legit stated.
The upcoming wintry weather consultation of Parliament will begin on December 15 and continue until January five.
Last month, Finance Minister Arun Jaitley had announced an extraordinary Rs 2.11 lakh crore two-year road map to toughen public sector banks (PSBs). The plan incorporated re-capitalisation bonds of Rs 1.35 lakh crore.
The finance minister had stated more than one choices for recapitalisation bonds had been on the govt desk, are being examined and the most efficient ones would be explored.
Once the structure is in position, the government will frontload bond issuance, and a initial evaluate signifies that it could be between Rs 70,000-80,000 crore, the legit added.
The investment is predicted to assist toughen financials of NPA-hit banks. Non-performing assets (NPAs) of public sector banks alone have higher to Rs 7.33 lakh crore as of June 2017, from Rs 2.75 lakh crore in March 2015.
Besides recapitalisation bonds, the finance minister had announced that banks would get about Rs 18,000 crore under the Indradhanush plan over the following two years.
Under the Indradhanush road map announced in 2015, the government had announced infusion of Rs 70,000 crore in state- owned banks over 4 years while they're going to have to boost an extra Rs 1.1 lakh crore from the marketplace to satisfy their capital requirement consistent with international possibility norms, known as Basel-III.
In the remaining three-and-a-half years, the government pumped in Rs 51,858 crore capital within the PSBs. The last Rs 18,142 crore will likely be injected into the banks over two years.
The Department of Financial Services, in session with the Reserve Bank of India, has submitted proposals to the Department of Economic Affairs, which is working on the ultimate structure, a central authority legit stated, including that the final structure will likely be known in the following couple of days after approval from the finance minister.
The framework as soon as cleared will move to Parliament for necessary approvals, every other legit stated.
The upcoming wintry weather consultation of Parliament will begin on December 15 and continue until January five.
Last month, Finance Minister Arun Jaitley had announced an extraordinary Rs 2.11 lakh crore two-year road map to toughen public sector banks (PSBs). The plan incorporated re-capitalisation bonds of Rs 1.35 lakh crore.
The finance minister had stated more than one choices for recapitalisation bonds had been on the govt desk, are being examined and the most efficient ones would be explored.
Once the structure is in position, the government will frontload bond issuance, and a initial evaluate signifies that it could be between Rs 70,000-80,000 crore, the legit added.
The investment is predicted to assist toughen financials of NPA-hit banks. Non-performing assets (NPAs) of public sector banks alone have higher to Rs 7.33 lakh crore as of June 2017, from Rs 2.75 lakh crore in March 2015.
Besides recapitalisation bonds, the finance minister had announced that banks would get about Rs 18,000 crore under the Indradhanush plan over the following two years.
Under the Indradhanush road map announced in 2015, the government had announced infusion of Rs 70,000 crore in state- owned banks over 4 years while they're going to have to boost an extra Rs 1.1 lakh crore from the marketplace to satisfy their capital requirement consistent with international possibility norms, known as Basel-III.
In the remaining three-and-a-half years, the government pumped in Rs 51,858 crore capital within the PSBs. The last Rs 18,142 crore will likely be injected into the banks over two years.
Arun Jaitley's nod to Rs 1.35 lakh crore recap bonds likely soon
![Arun Jaitley's nod to Rs 1.35 lakh crore recap bonds likely soon]()
Reviewed by Kailash
on
November 30, 2017
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