With reference to Ishan Bakshi?s report, ?Solvency position of govt banks worsens? (February 25), the debt burden and the consequent decelerating debt servicing capacity of business enterprises are directly hampering the asset quality of banks. This impacts public sector banks (PSB) more, as the major chunk of their advances are for the infrastructure, power, communications, iron and steel and textiles sectors, which are stressed due to costly debts.
If this situation persists, PSBs will end up with negative net worth. It is imperative for PSBs to rethink their lending rates and capital adequacy, strategies for recovering bad assets and
If this situation persists, PSBs will end up with negative net worth. It is imperative for PSBs to rethink their lending rates and capital adequacy, strategies for recovering bad assets and
