Weaker banks are likely to be capitalised only to cover their provisioning requirements, while stronger banks would be provided capital for growth as well, sources in the finance ministry have said. Also, the Rs 1.35-lakh-crore worth of bank recapitalisation bonds — of the Rs 2.11-lakh-crore recap scheme offered by the government on Tuesday — would be issued by the government, senior officials confirmed. Through the recap, the government is looking to increase lending activity, especially to small and medium enterprises. It hopes the move would in turn create ...
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First Published: Fri, October 27 2017. 01:57 IST
