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After berating credit rating agencies for daring to downgrade Indian banks and in one case even saying it was an ‘effort to destabilise our banking system’, the finance ministry appears to be getting real. A committee headed by finance secretary RS Gujral, FE reported Wednesday, has said that the government needs to infuse equity worth R35,000 crore each year in public sector banks for the next decade. Though the committee’s workings have not been made public as yet, it’s easy to calculate how it must have arrived at the capital needs. Indeed, if anything, the estimates seem a huge underestimate.

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