Capital Infusion In State-Run Banks To Be Raised To Over Rs 1 Lakh Crore In 2018-19: Report

The government plans to increase its capital infusion into some state-run banks to Rs 1.06 lakh crore ($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 approval of Parliament for Rs 41,000 crore of new funds. Earlier this year, it had been granted approval for Rs 65,000 crore.

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

That included about Rs 58,000 crore 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 = Rs 70.0460)