Union minister Prakash Javdekar on Tuesday anunced that  government has cleared recapitalisation of IDBI bank. approval for recapitalisation of Mumbai-hequarter bank was given at a meeting of Cabinet Committee of Ecomic Affairs (CCEA) and will entail a one-time fund infusion by Government and LIC (Life Insurance Corporation). 

In his briefing after CCEA, Javdekar said,  'This will help both IDBI and LIC. It will also show government's commitment to take banking to a sound level.'  He also ded that bank's b loans have reduced and it's Provision Cover Ratio (PCR) has increased.

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This recapitalisation move comes after Finance Minister Nirmala Sitaraman anunced a series of measures to bring ecomy back to stable health. This move by FM also included immediate release of Rs. 70,000 crore to Public Sector Banks. Significantly, 10 public sector banks were merged into four big banks, with Finance Minister saying that measures anunced would put India on path to getting credit availability commensurate with goal of being a $5 trillion ecomy.

Providing an update on or measures anunced a week even before that, Sitharaman said that banks h also agreed to pass on benefit of a repo rate cut to ir customers. Following this move, EMIs of various loans will be reduced by linking repo rate with interest rate. se anuncements come amid India's GDP growth falling to a 6.5-year-low in Q1. 

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