Government to infuse over Rs 88,000 cr in 20 PSBs

INDORE, India - Jan. 25, 2018 - PRLog -- The government has announced Rs 88,139 crore capital infusion plan in twenty public sector banks (PSBs), which have been hit by huge non-performing assets (NPAs), or bad loans, during the current financial year. Through this mega plan, the central govt is exercising its endeavor of keeping the public sector banks in good health.

Banks placed under PCA (prompt corrective action) by the RBI, like IDBI Bank and Bank of India will get the biggest share from the govt at Rs 10,610 cr, and Rs 9,232 cr, respectively, followed by SBI with Rs 8,800 crore.

Speaking at a press conference, FM Arun Jaitley emphasized the necessity for a reform is independent of the govt's stated objective of promoting consolidation in the banking sector. It is the govt's responsibilities to maintain state-run banks in good health and ensure they follow the highest excellence of corporate governance, said Arun Jaitley.

Banks have also been asked to tie up with expert monitoring agencies for credit exposure over Rs. 250 crore. Proper diligence has also been recommended while sanctioning loans. They have further been asked to scrutinize group balance sheets and ring-fence cash flows.

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