Merit in state banks' demand for more capital: FM Jaitley

India's state-owned banks have made a "strong case" for higher capital infusion by the government, Finance Minister Arun Jaitley said on Friday, adding he saw a merit in the demand.

"This is a strong case that the banks have made and therefore, I do believe that it's a case which merits the government seriously looking into it," Jaitley told a news conference after a meeting with bankers.

He, however, didn't specify how much more the government was ready to inject.

Jaitley has budgeted to infuse 79.4 billion rupees (USD 1.24 billion) in the fiscal year 2015/16 to shore up the capital of the state-run banks. But a central bank deputy governor said on Thursday the budgeted amount was not adequate.