“Re-Capitalisation Helped Unblock Financial Flows To productive Economic Sectors”

It is important that public sector banks are well capitalised to channelise public savings to entrepreneurial opportunities. With investments taking a turn, it was absolutely necessary that PSBs have the capacity to fund new projects, says Rajkiran Rai G, MD and CEO, Union Bank of India. Excerpts from an exclusive interview with Aparajita Gupta     Rajkiran Rai G MD and CEO, Union Bank of India   How bank re-capitalisation is helping in credit offtake in India? The banking sector continues to be public sector led with public sector banks (PSBs) having three-fourth share of overall savings deposits, about two-third share of advances, within which about three-fourth share is in credit to micro and small enterprises, and small farmers. With the asset quality issues notwithstanding, depositors have continued to trust PSBs with their hard-earned savings. They may not be making...