India to Inject $2 Billion Capital in Four Weakened State Banks
- Government plans funds infusion through zero-coupon bonds
- The money may help some lenders emerge from RBI’s sanctions
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India will infuse 145 billion rupees ($2 billion) into four state-run banks to help strengthen capital buffers and potentially free some of the lenders from regulatory curbs.
Central Bank of India, Indian Overseas Bank, Bank of India and UCO Bank will receive the funds through zero-coupon bonds, according to a government notification dated Tuesday. All these lenders, except Bank of India, are under the Reserve Bank of India’s sanctions as their bad loans rose.