Hong Kong, Sept 21 (KNN) Government first wants to strengthen the public sector banks by bringing down their level of NPAs, after which steps like issuance of fresh capital and merger of weaker banks would take place, Finance Minister Arun Jaitley said.

Jaitley was addressing a press conference on the last day of his four-day visit to Singapore and Hong Kong.
 
Talking about the steps being taken to strengthen the banks, Jaitley said, “Rs 70,000 crore is not the only money. Rs 1.10 lakh crore is coming through issuance of additional capital.

“The idea is to first strengthen the banks and then issue the capital. I would not issue the capital at the present level of NPAs. I have indicated a 3-4 year road map. In the next three years, we would have complied with Basel III norms. Therefore, Rs 1.80 lakh crore is to be invested, including Rs 70,000 crore from the Budget.

“My first tranche is to strengthen the banks. First, we need to bring down the NPAs, only then banks will issue the capital,” he said.

On the merger of some banks, Jaitley said, “That option after strengthening the banks is open.” (KNN Bureau)