October 3, 2013 4:50 PM

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Govt to increase capital infusion in PSU banks<br/>

The Government has decided in principle to enhance the amount of capital to be infused into Public Sector Banks. The additional amount of capital will be provided to banks to enable them to lend to borrowers in selected sectors at lower rates in order to stimulate demand. The move is also expected to give a boost to capacity addition, employment and production.The decision was taken in a meeting between Finance Minister P. Chidambaram and Governor of Rerserve Bank of India Raghuram Rajan today in New Delhi. It may be recalled that an amount of 14000 Crore rupees was provided for capital infusion in this year&apos;s Union Budget.

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