India seeks approval to issue 800b rupees bank recap bonds

New Delhi

INDIA'S finance ministry sought parliamentary approval to issue about 800 billion rupees (S$16.8 billion) of bank recapitalisation bonds before the end of the current fiscal year.

Prime Minister Narendra Modi's administration expects to sell the bonds by March 31 as part of plans announced in 2017 to inject capital into state-controlled lenders, which are weighed down with soured loans, according to the proposal put to lawmakers in New Delhi on Thursday. The new bonds will carry annual interest of more than 60 billion rupees, people familiar with matter said, asking not to be named as the information is confidential.