Govt seeks Parliament nod for Rs 80,000 cr PSBs recapitalisation

The finance ministry sought Parliament’s nod for extra expenditure of Rs 80,000 crore towards recapitalisation of public sector banks through bonds.

Meanwhile, sources said the proposed recapitalisation bonds to be given to public sector banks would have non-SLR status and will be non-tradeable.

The Rs 80,000-crore expenditure has been sought by the government in form of the Third Batch of Supplementary Demands for Grants for 2017-18.

It is part of Rs 1.35 lakh crore recapitalisation bond to be provided to the banks over two years to shore up capital adequacy of NPA-hit state-owned banks, they said.

Parliament’s approval has been sought for “meeting additional expenditure towards recapitalisation of Public Sector Banks through issue of government securities”, said the finance ministry document.

Statutory Liquidity Ratio (SLR) is a portion of deposits that banks need to invest in government securities.

(Agencies)

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