India to Spend $12 Billion by March on Bad Loan Clean Up
- Capital infusion intended to help meet regulatory requirements
- Measures to reduce bad asset ratios and increase lending
A man counts Indian rupee banknotes.
Photographer: Dhiraj Singh/Bloomberg
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India will infuse 830 billion rupees into state-run banks by March as Prime Minister Narendra Modi races to clean up a sector that’s saddled with a mountain of bad debt and boost economic growth ahead of next year’s federal polls.
A parliamentary approval to spend an additional 410 billion rupee has been sought, Finance Minister Arun Jaitley said in New Delhi today. That takes the total infusion in state-run banks to 1.06 trillion rupees this fiscal year, he added.