Give more funds to banks to end bad loans crisis: Patel


Business, Economy

Patel says extra funds could be raised at market and through govt diluting its stake in state-run banks.

Finance Minister Arun Jaitley and RBI governor Urjit Patel at an undated event. (Photo: PTI)

Mumbai: 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, Mr Patel told a conference in Mumbai.

He also said that the banks would need to take haircuts as they address bad loans.