India to Inject $1.8 Billion of Capital Into State-Run Lenders
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India will inject 112 billion rupees ($1.8 billion) of capital into state-run banks in the next fiscal year to bolster risk buffers after bad loans climbed to a six-year high.
“Banks are under strain owing to rising nonperforming assets,” Finance Minister Palaniappan Chidambaram said today in New Delhi as he presented the government’s interim budget for the year ending March 2015 to parliament. “Bankers have assured me that as the economy turns they will be able to contain the nonperforming assets and recover more loans.”