Recapitalisation of PSBs to improve lending capacity: FM

12/02/2018 15:16

Finance Minister Arun Jaitley has said that the government's move to recapitalise public sector banks (PSB) would improve their lending capacity.

Commenting on the issue, Finance Minister Arun Jaitley told the media, "I think the indications are that it [credit offtake] is already happening and that seems to be good sign and now with the recapitalisation of the banks, the capacity itself to lend will improve."

As per reports, the government's plans to spend Rs 2.11 lakh crore to recapitalise PSBs in a major step to restore the banking system's health.

"I had a meeting with the SEBI's [Securities and Exchange Board of India's] board, and one of the factors that stood out in their presentation was that there is now also increased reliance on the bonds market as far as credit is concerned," the finance minister said.

“Next year would be reasonably more comfortable as far as revenues are concerned,” he further said.