The Union Cabinet on Wednesday approved a capital infusion of Rs 6,000 crore by the government in the National Investment and Infrastructure Fund (NIIF), a sovereign wealth fund, over the next two years, Minister of Information And Broadcasting Prakash Javadekar said.
The government would invest Rs 2,400 crore in the NIIF during the current financial year ending in March that would help it raise up to Rs 1.lakh crore for investments, Mr Javadekar, told reporters after the cabinet meeting.
The cabinet also approved the merger of Lakshmi Vilas Bank (LVB) with DBS India, which is the wholly-owned subsidiary of DBS Bank.
“The speedy amalgamation and resolution of the stress in LVB is in line with government’s commitment to a clean banking system, while protecting the interests of depositors, public and financial system,” Mr Javadekar said in a media briefing at the end of the cabinet meeting. With the merger, there will no further restrictions on the depositors regarding the withdrawal of their deposit, the minister added.
As part of the amalgamation plan, DBS India will infuse fresh capital of Rs 2,500 crore into LVB and the entire share capital and reserves and surplus will be written off.