India may inject $3.7 bln in state banks in 2013/14-finmin source

Last Updated: Wed, Feb 13, 2013 12:30 hrs

NEW DELHI, Feb 13 (Reuters) - The Indian government is likely to allocate 200 billion rupees ($3.71 billion) for capital infusion in state-run banks in the next financial year, a finance ministry official with direct knowledge of budget talks told Reuters on Wednesday.

The official refused to be named as the information is a budget secret.

Finance Minister P. Chidambaram will reveal the amount in his budget speech on Feb. 28.

In the current fiscal year ending in March, the government set aside 150 billion rupees to inject capital.

The government will also try to raise 400 billion rupees in the new fiscal year through a partial privatisation of state-run companies, higher than 300 billion rupees it is aiming this year, the official said, adding this had not been finalized.

($1 = 53.9300 Indian rupees) (Reporting by Rajesh Kumar Singh)

More from Sify: