Government Committed to Support State-Run Banks, Says Piyush Goyal

Indian banks reported a rise in bad loans in the March quarter after the Reserve Bank of India withdrew half a dozen loan-restructuring schemes and tightened some rules in February.

Mumbai: India’s interim finance minister said on June 8 that the government was committed to support all state-run banks and strengthen their operations after several lenders reported a jump in net losses earlier this month.

“The government stands committed to support all 21 Public sector banks,” Piyush Goyal told reporters after a meeting with bank chiefs.

Indian banks, already burdened by a near-record 9.5 trillion rupees ($141 billion) of soured loans as of last year, reported a further rise in bad loans in the March quarter after the Reserve Bank of India withdrew half a dozen loan-restructuring schemes and tightened some rules in February.