NEW DELHI (Reuters) - The Indian cabinet has approved a plan to infuse 122 billion rupees ($2.22 billion) in state-run banks, a minister, who declined to be named, told reporters on Thursday.
India’s state-run banks are facing rising non-performing assets (NPA) and write-offs because of poor lending decisions.
Finance Minister P. Chidambaram said the combined injection of capital would not exceed the 150 billion rupees provisioned in the budget for the fiscal year ending 2013, which is short of the banks’ requirements.
($1 = 54.8550 rupees)
Reporting by Nigam Prusty; Editing by Anand Basu