Banks must turn to markets for money, says Sitharaman

Bloomberg

India’s banks need to raise funds from markets for their growth rather than depend on the government for recapitalisation,
Finance Minister Nirmala Sitharaman said.
“Banks are today less burdened because books are cleaner,” Sitharaman said at the annual general meeting of the Indian Banks’ Association. “As a result they will able to go and raise money from markets. I have absolute self-interest in pressing this particular aspect because I would think burden on government to recapitalise you will be far lesser.”
The country will need more large lenders such as State Bank of India to meet the challenges of economy and industry, she said. India’s government will guarantee $4.2 billion of security receipts issued by its new bad bank, in a fresh attempt to clean up one of world’s biggest piles of bad loans, she said earlier.
The National Asset Reconstruction Company Ltd., to be owned by government-run and private sector lenders, will hold stressed assets which can be sold on to investors at a reduced price.
“No business can happen without borrowing and I am sure you understand better than I understand,” Sitharaman said.