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India's central bank governor says state banks need more capital
August 19, 2017 / 6:40 AM / 3 months ago

India's central bank governor says state banks need more capital

MUMBAI, Aug 19 (Reuters) - State-run banks will need a bigger recapitalisation to resolve bad loan problems weighing on their balance sheets, the Reserve Bank of India Governor Urjit Patel said on Saturday.

Extra capital will need to be raised in several ways, including raising funds from the market and through the government diluting its stake in state-run banks, Patel told a conference in Mumbai.

He also said that the banks would need to take haircuts as they address bad loans. (Reporting by Suvashree Choudhury; Writing by Tommy Wilkes; Editing by Richard Pullin)

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