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.
From Dependence to Self-Reliance: Mapping India’s Rise as a Global Superpower By Bimal Jalan Rupa Publications, 184 pages, Rs 695 Bimal Jalan, a former governor of the Reserve Bank of India (RBI), has been one of our finest commentators on econom
While many countries have been chasing to reach the carbon neutral status, only a few seem to be living up to their pledges as of now. The famous ’Paris Agreement’ of 2015 was glorified and celebrated that finally 196 countries have united with an intent to mitigate and reduce the greenhouse ga
The government this week announced the Tour of Duty or `Agnipath` scheme for the recruitment of soldiers in the armed forces. Under this scheme new soldiers will be recruited only for four years. This radical and far-reaching scheme has attracted mixed reactions from various quarters. While some officials
UPI has become an integral part of our daily lives now. We use it to buy groceries, we use it to send money to friends and family, we use it to purchase tickets, book shows, pay the cab driver, and a whole host of other things due to the ease and availability of such a platform at our fingertips. The best
Scorching Love: Letters from Mohandas Karamchand Gandhi to his son, Devadas By Gopalkrishna Gandhi and Tridip Suhrud Oxford University Press, 528 page, Rs 1495 Gandhi’s era happened to be an era when letter-writing was a primary mode of communica
Crediting the citizens of Mumbai for coming forward to help the police in combating the crisis situation due to Covid-19, Mumbai police commissioner Sanjay Pandey has said that Mumbai Police lost quite a few policemen during the pandemic but cumulative efforts, with citizens working hand in hand with the p