New Delhi: Discussing the government move to recapitalize public sector banks, Finance Minister Arun Jaitley today stated that the capacity of banks to lend will improve after this initiative taken up the government.
While talking to the media, Jaitley went on to say: “I think the indications are that it [credit off take] is already happening and that seems to be good sign and now with the recapitalization of the banks, the capacity itself to lend will improve.”
He was addressing a press meet along with Reserve Bank of India Governor Urjit Patel.
The government’s plans to spend Rs 2.11 lakh crore to recapitalize PSBs in a major step to restore the banking system’s health.
“I had a meeting with the SEBI’s [Securities and Exchange Board of India’s] board, and one of the factors that stood out in their presentation was that there is now also increased reliance on the bonds market as far as credit is concerned,” the finance minister said.
Jaitley had a meeting with RBI and SEBI boards in the national capital on Saturday on the Union Budget.