(MC)
Finance Minister Nirmala Sitharaman in her Budget speech on July 5 administered a booster shot to India’s beleaguered state-owned banks, setting aside Rs 70,000 crore that the government will inject as additional capital into public sector banks.
The banking sector has been beset with bad loans that have risen due to slow growth and delays in project implementation. The latest fund injection is part of the government’s road map to adequately bolster the state-owned banks’ capital base. This is aimed at keeping the credit tap open for genuine businesses, ensuring that economic growth does not suffer.
