Budget 2019: Govt to infuse rs 70,000 crore into state-owned banks

Finance Minister Nirmala Sitharaman Friday announced that the government will pump in 70,000 crore into public sector banks (PSBs) to strengthen them and enhance their lending capacity.

Unveiling Budget 2019-20, Sitharaman said non-performing assets of PSBs have come down by Rs 1 lakh crore. Banks have recovered Rs 4 lakh crore due to the Insolvency and Bankruptcy Code and other means effected in the past four years, she said.

The government has decided to infuse Rs 70,000 crore in the state-owned banks, so that credit growth can be improved, she said. Domestic credit has increased to 13 per cent. She further said the government has carried out consolidation in the PSBs, smoothly reducing their number by 8.

This is the first budget to be presented under the Narendra Modi government 2.0 after it got re-elected in recent Lok Sabha elections. The finance minister began her maiden budget speech recognising the massive turnout in the Lok Sabha elections, saying it is reflective of a ‘new India’ which wants national security and economic growth to remain in focus.

The interim Budget 2019 was presented by Piyush Goyal, who was given the charge of finance ministry temporarily following the illness of Arun Jaitley.