BUDGET 2018 - The Banking Sector has seen its share of action which has happened over the last few years. First with the issue of NPAs, then demonetization and now finally with recapitalization of banks the sector has been in the eye of the storm so as to speak. Experts believe that the said issues are going to have a very substantial impact on the Budget 2018. It is expected that the FM will have a special focus on the Banking and the financial sector in the Budget 2018-19. The Government in October 2017 announced and then recently detailed the nature of the recapitalization plan of 2.11 Lakh crore for Public Sector Banks (PSBs). Around 20 PSBs will be recapitalized with Government infusing capital to improve health and functioning of these PSBs. The capital will be used by the Public Sector Banks mostly to tide over bad debts and to revive credit growth. Along with recapitalized a sleuth of Banking reforms and other measures are expected to be put in place. Some of these measures have already been set in motion by the Government. Yearly evaluation of PSBs by independent agencies, yearly report card and rankings and performance linked capitalization are just some of the measures suggested by the Government. Other than these steps other reforms along with a corresponding roadmap can be expected in the Budget 2018-19.
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