Investors not soothed by capital boost for India banks

Mumbai

INDIA'S plan to inject more capital into state-owned banks is doing little to alleviate investor concern that lenders' credit profiles are deteriorating.

The cost of insuring bonds issued by State Bank of India, IDBI Bank Ltd and Bank of India have risen this week, credit default swap data compiled by Bloomberg show. The increases come even after the finance ministry said earlier this month that 13 public sector lenders would receive a 229.2 billion rupee (S$4.6 billion) capital boost from the government.