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Only Few PSBs Qualify for Recapitalization: FinMin
December 26, 2017
Most of the public-sector banks won’t be able to avail the benefit of capital infusion as they didn’t meet the performance target, the finance ministry said.
The government had earlier announced to infuse as much as Rs. 70,000 crores into the banking sector to help it climb out of the mire of bad loans.
Under the “Indradhanush Plan”, the government had proposed to provide 25,000 crores each in FY16 and FY17 and Rs 10,000 crores each in FY18 and FY19. However, as of now, it has infused only Rs. 51,858 crores in the PSBs with only Rs. 16,414 crores i.e. 75% for FY17.
The ministry said it hasn’t released the remaining 25% as most PSBs didn’t achieve the performance target.
