October 25, 2017 / 6:39 AM / in a year

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

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