Yesterday the Indian government announced a $32 billion recapitalisation plan for state-owned banks. As elsewhere, these have been struggling under the weight of non-performing loans and weak balance sheets, CNBC reports. Earlier estimates had suggested that to comply with Basel III they would need between $40 billion and $65 billion. Government bonds to the tune of 1.35 trillion rupees would be issued and the remaining 760 billion rupees from the banks’ own fund raising efforts.
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