Government to increase state banks’ capital infusion to $15 billion this fiscal year: source

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NEW DELHI (Reuters) – The Indian government plans to increase its capital infusion into some state-run banks to 1.06 trillion rupees ($15.13 billion) in the current fiscal year ending in March, a finance ministry source said on Thursday.

The official was speaking after the government sought parliamentary approval for 410 billion rupees of new funds. Earlier this year it had been granted approval for 650 billion rupees.

In 2017, the government had announced a plan for an infusion of 2.11 trillion rupees ($30.06 billion) in 20 state banks by March 2019 to meet global regulatory requirements.

That included about 580 billion rupees to be raised by the banks themselves through financial markets but they have fallen well short of the target, forcing the government to come up with more money.

($1 = 70.0460 Indian rupees)

Reporting by Aftab Ahmed and Manoj Kumar; Editing by Martin Howell

Our Standards:The Thomson Reuters Trust Principles.

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