(ET)
A robust public sector banking system will have an increased ability to support economic growth, finance minister Arun Jaitley said on Sunday as the government moves to recapitalise state-run lenders burdened with bad loans.
“When the system is making all these changes and all these monetary contributions in order to strengthen the banking system, we want robust public sector banking system so that your ability to support growth itself increases,” the finance minister said at ‘PSB a twoday conclave of public sector banks in Gurugram.
Jaitley said the country was paying to keep the banking system in good health. He demanded more from public sector banks while saying there would be no interference from the government’s side in banks’ commercial transactions. In October, the government announced a Rs 2.11-lakh-crore capital infusion plan for PSBs of which Rs 1.35 lakh crore is to be raised through bonds.
