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Jaitley announces Rs 2.11 lakh cr support for debt-ridden PSU banks

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The Union Finance Ministry has announced Rs 2.11 lakh crore for the Public Sector Unit (PSU) banks to help them improve their bad loans-hit balance sheet.

The PSU banks are presently facing bad debts worth Rs 7,33,000 crore approximately. These bad debts have skyrocketed from Rs 285,000 crore in March 2015 to Rs 7,33,000 crore till June 2017.

The amount of Rs 2.11 lakh crore is said to be infused over two financial years — Rs 1.35 lakh crore through recapitlisation bond, Rs 58,000 crore from the markets and over Rs 18,000 crore from the Government.

“Nature and details of the bonds will be determined by the Government. We will soon make it public as to how and in what manner the bonds to the PSU banks would be issued,” Finance Minister Arun Jaitley told media in a conference in the capital. Six finance secretaries were also present on the occasion.

Several measures and projects of the ministry being currently undertaken, including an ambitious road development project ‘Bharat Mala’ along with border and port connectivity projects, were also highlighted.

“Bharat Mala” project is the biggest ever project after the National Highway project. Under this, 38,000 km of highways will be constructed across the length and breadth of the country to the tune of Rs 5.35 lakh crore.

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