India plans to inject US$11b into ailing state banks

New Delhi

PLANNING to inject US$11 billion of capital into debt-laden state banks over the next four years, India's Finance Minister Arun Jaitley on Friday sought Parliament's approval to boost budget spending by US$4 billion in the current fiscal year.

High levels of non-performing assets in state-run banks have made it hard for the government of Prime Minister Narendra Modi to revive investment or accelerate growth in Asia's third largest economy. After initial hesitation, Mr Jaitley agreed with a plea by the Reserve Bank of India to provide more capital to banks.