India's state banks to receive $32b of capital over two years

India eyes recovering from a 25-year low bank loan growth.

According to Bloomberg, India will inject 2.11 trillion rupees ($32 billion) of capital into state-controlled lenders over two years, an amount that’s ten-fold higher than the government’s previous pledge as it seeks to revive growth in Asia’s third-largest economy.

"The government will sell 1.35 trillion rupees of recapitalization bonds while banks will raise another 760 billion rupees through “budgetary support” and from the markets, Rajiv Kumar, banking secretary at India’s Finance Ministry said at a briefing on Tuesday. The government also announced plans to spend $108 billion on building highways in the next five years," Bloomberg said.

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