Finance Minister Arun Jaitley today said, the government has decided to inject more capital in state-owned banks to strengthen the banking system and spur economic growth.
Addressing heads of state-owned banks at ‘PSB Manthan at Guragaon in Haryana, Mr Jaitley said, the government has decided to put in more capital from the Budget, through bonds and banks’ equity expansion.
He said, the government wants a robust public sector banking system to enhance their ability to support growth and economy.
Mr Jaitley said, banks are focussing on supporting MSMEs because the sector, which is creating jobs and giving boost to the economy, has no access to international finance or bond market.
AIR correspondent reports that last month the Union Cabinet approved massive recapitalisation plan of Rs. 2 lakh 11 thousand crore for public sectors banks.