The Cabinet today cleared recapitalization of IDBI Bank with a one-time infusion of funds by both the government and the LIC.

It has approved 9,000 crore capital infusion into IDBI Bank, including 4,557 crores by the government as one-time re-capitalisation.

Briefing media after the Cabinet meeting in New Delhi, Union Minister Prakash Javadekar said this will help both IDBI and LIC, and it shows the government’s commitment to take banking to a sound level. He said the government is watching developments in the banking sector and is committed to the recapitalisation of banks.