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Budget credit-negative for PSBs: Moody's

Press Trust of India  |  Mumbai 

The Union Budget is a credit-negative for public sector banks (PSBs), as the capital infusion announced by the government will be insufficient for lenders in a rising NPAs (non-performing assets) scenario, global rating agency Moody's said on Tuesday. The government has stuck to the capital infusion road map announced last year, budgeting only Rs 25,000 crore for PSBs in the 2016-17.Read more from our special coverage on "PUBLIC SECTOR BANKS"At Rs 4 lakh cr, bad loans exceed market value of PSBsPSBs credit profile at risk without more capital: FitchICRA expects bank stress to ...

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Budget credit-negative for PSBs: Moody's

The Union Budget is credit negative for public sector banks as lower capital infusion announced by the government will be insufficient for lenders in a rising NPAs scenario, global rating agency Moody's said today. The government has stuck to the capital infusion roadmap that was announced last year, budgeting only Rs 25,000 crore capital injections for the public sector banks in the fiscal 2016-2017. As per Capitaline data, gross non-performing assets of 39 listed banks surged to Rs 4.38 lakh crore in the December quarter, up from Rs 3.4 lakh crore in the September quarter. Most of them are contributed by state-run banks. The only silver-lining in the Budget was that the government was open to infuse more capital as and when needed. "The Budget is largely credit negative for public sector banks as the planned capital allocation for the coming fiscal year will likely be insufficient due to the sector's increased recognition of NPAs," Moody's said in a report. It further said ... The Union Budget is a credit-negative for public sector banks (PSBs), as the capital infusion announced by the government will be insufficient for lenders in a rising NPAs (non-performing assets) scenario, global rating agency Moody's said on Tuesday. The government has stuck to the capital infusion road map announced last year, budgeting only Rs 25,000 crore for PSBs in the 2016-17.Read more from our special coverage on "PUBLIC SECTOR BANKS"At Rs 4 lakh cr, bad loans exceed market value of PSBsPSBs credit profile at risk without more capital: FitchICRA expects bank stress to ... image
Business Standard
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Budget credit-negative for PSBs: Moody's

The Union Budget is a credit-negative for public sector banks (PSBs), as the capital infusion announced by the government will be insufficient for lenders in a rising NPAs (non-performing assets) scenario, global rating agency Moody's said on Tuesday. The government has stuck to the capital infusion road map announced last year, budgeting only Rs 25,000 crore for PSBs in the 2016-17.Read more from our special coverage on "PUBLIC SECTOR BANKS"At Rs 4 lakh cr, bad loans exceed market value of PSBsPSBs credit profile at risk without more capital: FitchICRA expects bank stress to ...

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Business Standard
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