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India bank recap bonds unlikely to reflect in fiscal deficit - source
October 26, 2017 / 8:52 AM / 23 days ago

India bank recap bonds unlikely to reflect in fiscal deficit - source

NEW DELHI (Reuters) - The Indian government’s 2.11 trillion-rupee ($32.53 billion) plan to infuse capital into its banks, bulk of which will be funded via recapitalisation bonds, is unlikely to reflect in the fiscal deficit, a finance ministry official said on Thursday.

FILE PHOTO: An India Rupee note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo

The government announced the recapitalisation plan earlier this week. As part of the plan 1.35 trillion rupees worth of bonds will be issued.

The government has a target to keep fiscal deficit at 3.2 percent of gross domestic product in the year to March 2018, and at 3 percent in the next financial year.

($1 = 64.8550 Indian rupees)

Reporting by Manoj Kumar

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