FinMin working on recap bonds, expected to receive Jaitley's nod soon

The framework for bank recapitalisation once cleared will go to Parliament for necessary approvals.

Finance ministry asks PSBs to submit fund-raising plan in a month

This will help in better utilisation of the money that the government will provide to them under the bank recapitalisation plan.

In the last week of October, Jaitley had announced an unprecedented PSU banks recapitalisation program of Rs 2.11 lakh crore.

Last month, the government proposed a Rs 2.11 lakh crore public sector bank recapitalisation plan.

Traders said sentiment was upbeat in domestic energy stocks with Brent crude soaring to hit its highest level since July 2015.

As per Ambit estimates, industry is likely to see a 7 per cent growth in 2018-19 from 5 per cent in the current fiscal.

Over the last week, the Sensex recorded handsome gains of 767.26 points or 2.37 per cent.

Finance Minister Arun Jaitley last week said that there were multiple options before the government for recap bonds.

According to Morgan Stanley, the announcement is not expected to impact fiscal deficit position and inflation number.

Modi was already facing criticism from some businesses for the disruption to the economy caused by note ban and GST.