The government is set to pump in more capital into public sector banks over and above the budgeted Rs 14,000 crore to help boost demand in the economy
GN Bureau | October 3, 2013
In another desperate measure to boost demand and enhance investment activity, the government has decided to inject more capital into the public sector banks (PSBs) over and above the sum of Rs 14,000 crore announced in the 2013-14 budget. However, the government is yet to decide on the additional capital.
The move is likely to help restore various sectors including automobile and consumer durables on the growth track. The announcement was made on Thursday after a meeting between finance minister P Chidambaram, reserve bank of India (RBI) governor Raghuram Rajan and economic affairs secretary Arvind Mayaram.
"The central government has decided in principle to enhance the amount of capital to be infused into public sector banks. It may be recalled that in the budget for 2013-14, a sum of Rs. 14,000 crore was provided for capital infusion. This amount will be enhanced sufficiently," the finance ministry said in a statement.
"The additional amount of capital will be provided to banks to enable them to lend to borrowers in selected sectors such as two wheelers, consumer durables etc, at lower rates in order to stimulate demand. While this will bring relief to the consumers, especially the middle class, it is also expected to give a boost to capacity addition, employment and production," the statement further said.
During the meeting, the fall in credit growth in certain sectors was taken up. Despite gross bank credit registering a year-on-year jump of 18 percent at the end of September 2013, demand for credit in certain sectors has slumped.
An underground rapper who grew up on Mumbai streets, Divine spins his music around his environment and poverty. His breakout single, ‘Meri Gully Mein’, along with fellow rapper Naezy caught Bollywood’s attention. The Hindi film ‘Gully Boy’ is inspired by their lives and gr
Anil Swarup, an IAS officer of Uttar Pradesh cadre who retired in 2018, is a model bureaucrat who retained his optimism right till the end of service and exemplified dedication and commitment. His excitement at the opportunities that a job in the IAS provided is evident on every page of his new book publis
The question of reform of the civil services has been debated extensively at all levels at least over the last five to six decades after independence. Indeed, it was soon perceived that the Indian Administrative Service (IAS) may not be well equipped to deal with the problems of an emerging developing coun
Shouting vengeance at all and sundry while wriggling out of holes of our own making seems to be our very special national characteristic. Some recent instances are illustrative of this attribute. A number of business tycoons with thousands of crores of unresolved debts have fled abroad with the government
The Central Bureau of Investigation (CBI) came into existence, based on a Resolution of the home ministry, dated April 1, 1963 – a sheer coincidence that it also happens to be April Fool’s day. Over the past few months, we have seen the CBI live up to its founding day with great zeal, being i
Gujarat was passing through a turbulent phase in the 1980s. The decade began middle class agitations against new reservation policies, and the caste friction turned communal under the watch of chief minister Madhavsinh Solanki, alienating majority of urban population on both counts. The ground was ripe for