STOCK MARKET BSE NSE

India to ensure state banks meet minimum capital requirements: Government official

India will ensure that all its state-run lenders meet their minimum capital requirements as mandated by the country's central bank, a top government official said on Wednesday.

Published: 23rd May 2018 03:34 PM  |   Last Updated: 23rd May 2018 03:34 PM   |  A+A-

rupees, money, cash

Image used for representational purpose only. (File photo | Reuters)

MUMBAI: India will ensure that all its state-run lenders meet their minimum capital requirements as mandated by the country's central bank, a top government official said on Wednesday.

Most state banks have posted big losses in the quarter to March as bad loans surged after the central bank eliminated half a dozen loan restructuring schemes to hasten the clean-up of near-record levels of bad debt in February.

"When you do the cleaning part, a bit of dust, a bit of pain, is okay," India's Financial Services Secretary Rajeev Kumar told reporters, adding that he expected financials of state-run banks to improve going forward.

New Delhi will not allow lenders to default under any circumstances, Kumar said even though he maintained that the amount of capitalisation sanctioned by government for banks was sufficient.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp