India Is Said to Seek Approval For $12.6B of Bank Recap Bonds

The government will seek parliament’s approval to issue 800b rupees of bank recapitalization bonds by March 31, people familiar with the matter said.

• The interest cost on the bonds is expected to be more than 60b rupees annually, the people said, asking not to be identified as the information is not public
• Finance Ministry spokesman D.S. Malik didn’t respond to a call seeking comments
• NOTE: Markets, Moody’s Applaud $32 Billion Bazooka for India Banks
• NOTE: India to Inject $32 Billion Into State Banks to Spur Loans