InvestorQ : Why money is infused into 12 public sector banks?
Tanya Mehta made post

Why money is infused into 12 public sector banks?

Answer
user profile image
divya Sing answered.
1 year ago


Government is looking forward to strengthen the Indian banking sector. As a result, it is planned to infuse Rs48,200cr into 12 public banks. This will allow banks to meet the tight regulatory requirements and boost credit lending activities. This move will definitely help public sector banks to reserve their capital reserves and thus smooth functioning of banking activities. The government is hoping that a stronger banking system will help bolster loan growth hovering near a five-year high seen in December.

Below is the segregation of spending on public sector banks.

Image Source: Indiainfoline