NEW DELHI: Finance Minister Nirmala Sitharaman on Friday announced that the government will pump in 70,000 crore into public sector banks (PSBs) to strengthen them and enhance their lending capacity.
“Non-performing assets of PSBs have come down by Rs 1 lakh crore. Banks have recovered Rs 4 lakh crore due to the Insolvency and Bankruptcy Code and other means effected in the past four years, she said while unveiling Budget 2019-20.
“The government has decided to infuse Rs 70,000 crore in the state-owned banks so that credit growth can be improved. Domestic credit has increased to 13 per cent”, she added.
She further said the government has carried out consolidation in the PSBs, smoothly reducing their number by 8.
With inputs from PTI