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Arun Jaitley press conference highlights: Govt to infuse Rs 2,11,000 crore in public sector banks

Arun Jaitley will hold a press conference at 4 pm on Tuesday at the National Media Centre in Delhi and is likely to make some major announcements related to the economy.

FP Staff October 24, 2017 17:52:50 IST
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Arun Jaitley press conference highlights: Govt to infuse Rs 2,11,000 crore in public sector banks

Highlights

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Oct 24, 2017 - 17:19 (IST)

Oct 24, 2017 - 17:49 (IST)

Arun Jaitley takes on Opposition 

"If the Opposition wants to observe black day on 8 November it is up to them. This shows their respect towards the cash economy," says Finance Minister Arun Jaitley on the Congress announced that they would observe 8 November — a year of demonetisation — as a black day.

Oct 24, 2017 - 17:44 (IST)

Banking stocks to improve

"Share sale of state-owned banks to be attractive after recapitalisation. Once you strengthen banks, the appetite for their stock will improve," says Finance Minister Arun Jaitley.

Oct 24, 2017 - 17:40 (IST)

Recapitalisation bonds in larger interest of the nation: Jaitley


Finance Minister Arun Jaitley says that whether or not the recapitalisation bonds will impact fiscal deficit is a function of what the nature of the bond will be and which agency issues the bonds. But even if it is a part of the fiscal deficit, it will be in the larger interest of the nation.

Oct 24, 2017 - 17:37 (IST)

How will recapitalisation bonds work?

One big question at this moment is how exactly the recapitalisation bonds will work and what will be its impact on the government debt situation? During the presser Arun Jaitley said the government will have to work out the nature of the recap bonds. Jaitley cited international experience where similar bonds are not part of the fiscal deficit but mentioned that in India the situation could be different. The critical clarification needed now is to see which will is the agency that will issue these bonds. If the government issues these bonds, then it becomes part of the government debt. There is no clarity on this as of now. Besides, there is no clarity on for how many years these bonds will be issued. The details of the recapitalization bonds will be keenly watched. In a chat with CNBC-TV18, former RBI deputy governor, KC Chakrabarty, recap bonds are good instruments but if banks need to bear the cost of the exercise, this may not be a good way to recapitalise the banking sector.

Oct 24, 2017 - 17:36 (IST)

Boosting public investment consistent attempt of govt: Jaitley


"Boosting public investment is a consistent path we have followed. There are no embargoes as per as wilful defaulters are concerned," says Finance Minister Arun Jaitley.

Oct 24, 2017 - 17:33 (IST)

GST a legitimate tax: Jaitley


"People who were worried about 2G and coal blocks would be affected by the legitimate tax," " says Finance Minister Arun Jaitley on Congress vice-president Rahul Gandhi's jibe on GST.

Oct 24, 2017 - 17:30 (IST)


Between 2014-15 and 2017-18, banks have made provisions of over Rs 3 lakh crore, more than 10 times the amount made in the preceding 10 years.

Oct 24, 2017 - 17:29 (IST)

Indiscriminate lending by banks

"Between 2008 and 2013 public sector banks engaged in indiscriminate lending," says Finance Minister Arun Jaitley.

Oct 24, 2017 - 17:27 (IST)

Bold step by the govt: Jaitley

"It was decided that a bold step needs to be taken by the government to recapitalise banks," says Finance Minister Arun Jaitley.

Union finance minister Arun Jaitley will hold a press conference at 4 pm on Tuesday at the National Media Centre in Delhi and is likely to make some major announcements.

According to CNBC-TV18, the government will make a crucial announcement related to the recapitalisation of capital starved public sector banks. The minister is likely to decide the plan for increasing capital in the weak balance sheets of banks including United Bank of India, UCO bank, Corporation bank, Allahabad Bank, Indian Overseas Bank, and Dena Bank, among other capital starved banks as the industry suffers from a decade-low credit growth at around six percent.

According to sources cited by CNBC-TV18, recap bonds may be announced, which would be sold to banks that can then be converted into equity after a certain period.

Finance ministry secretaries are likely to be present at the announcement, which comes after a meeting which was attended by top officials on Tuesday, The Financial Express reported.

However, according to The Economic Times, the finance minister met Prime Minister Narendra Modi to apprise him of the state of the economy. The government may look at mid-term growth plans via higher public spending, the report said.

Updated Date:

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