India Poised to Infuse $2 Billion Into State-Run Banks
- Punjab National Bank is said to get largest single allocation
- Injection intended to bolster capital, meet bond payments
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India will inject at least 135 billion rupees ($2 billion) into state-controlled banks this month, as it seeks to shore up capital buffers and help the lenders meet coupon payments on their bonds, people familiar with the matter said.
The new capital infusion will ensure the state banks have room to grow their loan books while meeting capital requirements, the people said, asking not to be named as the information isn’t public. It’s the latest step in Prime Minister Narendra Modi’s 2017 plan to add 2.11 trillion rupees of capital into the lenders over two years, the people added.