Recapitalising the banks

The decision to transfer the huge amount of funds obtained from  the RBI may  assist the government to implement it’s plan  of recapitalising the public sector banks which have created serious  financial mess due  to their unwise credit operations.  But , it is   still doubtful whether , the injection of Rs 70000 crores to  be released in  a staggered manner over four  year period would help  these  banks to get back to it’s original credit strength and help the investing class to improve their performance . It could be an effective intervention only if the money invested in banks results in increased liquidity in the markets and helps in employment generation in sectors that need more labour such as , the construction industry . Any faulty steps by the banks in their credit operation as they did earlier would push the injected funds into the drain . That is the fear looming large in the concerned citizens mind.