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Centre seeks Rs. 41,000 crore more to recapitalise banks

The government on Thursday moved a proposal in Parliament for an additional Rs. 41,000 crore to recapitalise public sector banks, over and above the already budgeted Rs. 65,000 crore, Finance Minister Arun Jaitley told a press conference.

If approved by the House, this would take the total recapitalisation package for the current financial year to Rs. 1,06,000 crore, of which the government plans to utilise Rs. 83,000 crore over the remaining portion of the year.

The government also said the recognition of loans that are non-performing assets (NPAs) was nearly complete and the recovery process was progressing strongly, with Rs. 60,726 crore recovered in the first half of this financial year.

“At the beginning of this year, a total amount of Rs. 65,000 crore was still remaining to be used,” Mr. Jaitley said. “As of today, of that Rs. 65,000 crore, Rs. 42,000 crore is still remaining. And therefore, with this additional Rs. 41,000 crore, this year’s recapitalisation will be Rs. 1,06,000 crore.”