Recapitalisation solved solvency issue, but PSB turnaround awaited: Moody's

PSB executives said banks will look at expanding their loan books with focus on the retail, agriculture and micro, small and medium enterprises segment

The recapitalisation of 12 state-owned banks will improve their core capital, crucial for meeting regulatory norms. But, it will take four-five quarters for them to show stable performance, leading to profitability, according to bankers.
 
Senior public sector bank (PSB) executives said banks will look at expanding their loan books, albeit cautiously. The focus will be on the retail, agriculture and micro, small and medium enterprises (collectively termed RAM) segment where the demand is robust and risks are spread over a large number of borrowers.
 
On Wednesday, the government announced a Rs 48,239-crore capital infusion into 12 public sector