Govt announced infusing Rs 2.11 lakh crore to strengthen PSBs through recapitalisation bonds, budgetary support & market raising

The government has announced infusing Rs 2.11 lakh crore to strengthen public sector banks, through a mix of recapitalisation bonds, budgetary support and market raising, said banking secretary Rajiv Kumar.
Part of the money will be from banks raising their own capital, where the government can reduce their stake to 52 percent, said Arun Jaitley, who called it a “bold move”. The infusion will be front-loaded through recapitalisation bonds, whose nature will be decided in due course, Jaitley added.
Strengthening the country's banking system will result in more jobs, growth and investments, Kumar added. Banks are ready for a take-off due to strong economic fundamentals and push to public investment in infrastructure, he added.
In three and a half years, the government has already infused Rs 58,848 crore in PSBs under the Indradhanush plan. This is compared to Rs 62,734 crore infused in the six years to 2014, Garg said.
The government's recapitalisation plan is "why banks have mostly remained Basel-III compliant," he added.