Reuters logo
BRIEF-India cenbank governor says RBI welcomes bank recapitalization plan ‍​
October 25, 2017 / 6:39 AM / 2 months ago

BRIEF-India cenbank governor says RBI welcomes bank recapitalization plan ‍​

Oct 25 (Reuters) - Reserve Bank of India Governor Urjit Patel:

* Says RBI welcomes bank recapitalization plan ‍​

* Says by deploying recapitalisation bonds, it will front-load capital injections while staggering attendant fiscal implications over period of time‍​‍​

* Says recapitalisation bonds will be liquidity neutral for government except for interest expense that will contribute to annual fiscal deficit‍​

* Says for first time in last decade, have “real chance” that all policy pieces of jigsaw puzzle will be in place for comprehensive and coherent strategy

* Recapitalisation plan will involve participation of pvt shareholders of PSU banks by requiring that parts of capital needs be met by market funding

* Banks that have better addressed balance-sheet issues and in position to use fresh capital injection for credit creation can be given priority‍​ Source text - bit.ly/2yKF2w7

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below