Finance Ministry likely to issue first tranche of recapitalization bonds in early January

Finance Ministry is likely to issue the first tranche of recapitalization bonds to public sector banks in early January, informed Finance Ministry sources on Tuesday.

Recapitalization bonds will not be sold in open market and will be issued to all banks. 

Apart from this, the government will also infuse capital worth Rs 8000 crore on basis of performance and around Rs 8,000 crore PSB capital infusion would still be available from Budget 2018, said Finance Ministry sources. 

The government plans to infuse Rs 76,000 crore capital by giving it space in budgetary allocation and through markets, and rest Rs 1.35 lakh crore by issuing recapitalisation bonds, added the sources.