Amid rising NPAs and PNB fraud, PSU banks face credibility crisis

Will the public sector banks have enough capital to push growth in the light of recent incidents?

In less than a fortnight, the credibility of public sector banks (PSBs), which commands about 70% share of bank loan market, took a serious hit. And three incidents have contributed to this fracas.

First, the country’s largest bank – State Bank of India (SBI) – reported its first quarterly loss in 19 years. Second, Bank of Baroda’s (BoB’s) decision to shut operations in South Africa. BoB came under scanner after it emerged in April 2016 as the only bank willing to do