Question

What is recapitalisation of public sector banks?

Answer 1

Explanation:

Recapitalisation will involve two legs — first, banks will subscribe to bonds floated by the government.

In the second leg the government will infuse that money into public sector banks, bankers said. The same method was adopted last year for giving capital to banks.

Over the last five financial years (FY15 to FY19), PSBs have been recapitalised to the extent of Rs 3.19 trillion, with an infusion of Rs 2.5 trillion by the government and the mobilisation of over Rs 66,000 crore by PSBs themselves, according