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Thursday, January 21, 2016

Process to de-stress banks has been initiated: Jaitley

As bad debts weigh down on banks, Finance Minister Arun Jaitley said the process to de-stress the banks has been initiated while the government may add to the re-capitalisation of public sector lenders, reported PTI.

"More things are being done. Steps are being taken for recapitalisation of banks. We have announced the programme and we probably will have to add to that programme," Jaitley said here at the WEF Annual Meeting following suggestions from business leaders to take steps to boost the banking sector.

"Besides, RBI has asked banks to line up the bad debts they need to sell. The problem is not widespread and is limited to a few sectors.

"I am aware that both private and public sector banks are in touch with the concerned industry groups. We do not want to create a panic situation. Destressing of banks need to be tackled and the process for the same has been initiated," he added.