Govt seeks Parliament nod for $12.6 billion extra spending for bank recapitalisation bonds

The government on Thursday sought parliament approval for Rs 80,000 crore ($12.62 billion) extra spending to recapitalise state banks as part of a move to help lenders deal with bad debts and revive credit growth.

Last October, Finance Minister Arun Jaitley announced the plan to recapitalise banks with Rs 2.11 lakh crore over two years, including 1.35 trillion rupees through recapitalisation bonds and 580 billion rupees from share sale by state-run banks.