Published: Fri, October 27, 2017
Economy | By Melissa Porter

Bank recapitalisation plan a welcome move

Bank recapitalisation plan a welcome move

This comes after several opposition parties said they will hold rallies and call November 8 as the "Black Day" to mark note ban implemented previous year that day. He added that a lot of analysis has been done over the state of economy by the government and "steps are being taken to boost it".

The table accompanying the PIB tweet said "IMF Forecast" said that 8.2 per cent growth was achieved in 2015-16, temporary economic slowdown was bottoming out and the GDP was projected to grow much faster in the times to come.

Aam Aadmi Party (AAP) has also announced to hold a nationwide protest, "Dhokha Divas", on 8 November to mark the completion of one year of demonetisation.

Mohan Guruswamy, an economist in New Delhi, said the government should have taken action three years ago to revive the banking sector.

"Now it's more expensive, and we will not see results soon", Guruswamy said.

The Financial Year 2017 recorded the lowest current account deficit of -0.7% GDP since Financial Year 2006.

Arun Jaitley had on Tuesday said the Indian economy is on a strong wicket and expressed confidence in its macroeconomic fundamentals. Recapitalisation bonds were used by the Indian government in the early 1990s as well. Under this, government will develop 34,000 km of roads with an investment of Rs 5.35 lakh crore.

In addition to repairing their balance sheets, the banks need billions of dollars in new capital to meet global Basel III banking rules, due to fully kick in by March 2019. Moody's expects the top 11 state lenders alone will need almost $15 billion. The state bank index closed 3.8 percent higher.

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