Government may inject $3.7 billion in banks in FY14: Source

The government is likely to allocate 200 billion rupees for capital infusion in state-run banks in the next financial year, a finance ministry official with direct knowledge of budget talks told Reuters on Wednesday. 

 

The official refused to be named as the information is a budget secret. Finance minister P. Chidambaram will reveal the amount in his budget speech on February 28. 

In the current fiscal year ending in March, the government set aside 150 billion rupees to inject capital. 

The government will also try to raise 400 billion rupees in the new fiscal year through a partial privatization of state-run companies, higher than 300 billion rupees it is aiming this year, the official said, adding this had not been finalized.