New Delhi: The government may set aside about ₹25,000 crore in the FY22 budget for providing capital to state-run banks, people aware of deliberations told ET. The finance ministry has sought details from lenders on capital requirements, estimated bad loans and plans to raise funds. The final capitalisation amount will be decided after these discussions.
“While various proposals including a bad bank are being discussed, an assessment is being done on the capital requirements for banks,” a government official said. “These are some projections which may vary depending on various factors such as the banks’ plan to raise capital, and spike in bad loans.”