Addressing heads of state-owned banks at PSB Manthan at Gurgaon in Haryana, Jaitley said, the government has decided to put in more capital from the Budget, through bonds and banks equity expansion.
He said that the government wants a robust public sector banking system to enhance their ability to support growth and economy.
The Finance Minister said that banks are focusing on supporting MSMEs because of the sector, which is creating jobs and giving a boost to the economy, has no access to international finance or bond market.
Last month, the Union Cabinet approved massive recapitalisation plan of Rs. 2 lakh 11 thousand crore for public sectors banks.
