The Indian government is considering injecting an additional 300 billion rupees of capital in public sector banks after they failed to raise funds from markets, the Press Trust of India reported Dec. 13, citing sources.

Part of the government's 2017 recapitalization plan included an aim for public sector banks to raise 580 billion rupees from the stock markets by March 2019 to meet Basel III requirements. It was hoped that this would help inject a total of 2.11 trillion rupees into the state-owned institutions over two years. However, the banks have been unable to raise the amount due to poor market conditions.

Sources said the lenders need about 300 billion rupees more to meet Basel III standards as the Reserve Bank of India has retained a capital-to-risk weighted assets ratio of 9%.

The government is expected to make a final decision on the additional injection in a few weeks, the report said.

As of Dec. 13, US$1 was equivalent to 71.53 Indian rupees.