RBI unlocks Rs 40,000 crore additional capital for banks
The Reserve Bank of India (RBI) revised norms on capital recognition, making available an additional Rs.40,000 crore to Indian banks. The move comes at a time when public sector banks are facing pressure on their profitability due to a sharp rise in non-performing assets, which is eroding their capital base. The announcement is a big relief for, mainly, public sector banks, after finance minister Arun Jaitley on Monday announced in his budget speech a capital infusion of Rs. 25,000 crore for the fiscal year starting in April.