Page 17 - Psbs

Rs 70K-cr capital infusion in PSBs credit positive, to boost economy: S&P

The proposed Rs 70,000-crore capital infusion into public sector banks (PSBs) will provide a timely booster to these lenders, S&P Global Ratings has said. The move, announced in the Budget, is likely to be credit positive for the banking sector and the economy, S&P said in a note titled 'India's Budget attempts to address trust deficit in the financial sector. "We believe the capital infusion will help PSBs make necessary haircuts on their weak corporate loans and shore up their capital adequacy," said S&P Global rating credit analyst Geeta Chugh. The capital infusion will help some banks to come out of the central bank's prompt corrective action and resume lending and clean up their balance sheets, she added. S&P said it believe PSBs still require substantial reforms to improve risk management, service quality, efficiency, and diversity of product offerings. While the government has infused large amounts of capital into PSBs in the past few years, the progress on ...

Banking on the Union Budget

PSB privatisation is a bold idea and for a government that embraced demonetisation, it could be a cakewalk

Letter to BS: Weak financial institutions need operational reforms

NPAs are under-capitalised and the banks are restrained by the prompt corrective action framework as they do not meet the stipulated regulatory financial parameters

PSBs likely to go on a fundraising spree to reduce govt shareholding

However, with market sentiments remaining muted, the fundraising might not be an easy task, especially for banks which are still under PCA.

CEA Subramanian backs Nayak panel's report on governance reforms in PSBs

The CEA also called for the diversification of business model by PSBs so that lenders were able to absorb any economic shock

Letter to BS: Govt must stop interfering with the affairs of PSBs

Undue intervention by bureaucrats, politicians and corrupt bank men in credit management is responsible for loan frauds, and the rise in the bad assets of government-owned banks

Next step in PSB consolidation process is some time away, say analysts

The current strength of banks and capital infusion plans of the government rule out an immediate merger

With many employees set to retire, Parl panel asks PSBs to step up hiring

The committee has also made a case for more incentives and a better remuneration package for senior management of PSBs

Over 6,000 PSB officers held responsible for bad loans in FY18: Jaitley

Jaitley said that minor and major penalties have been imposed against erring officials

7 PSBs may get Rs 286 billion through recapitalisation bonds by Dec-end

All banks, except Syndicate Bank, which are expected to receive capital infusion under RBI's PCA are facing certain lending restrictions

Shares of PCA banks surge on talks to ease lending norms

A government official said rules that curb unprofitable banks from lending may be eased

PSBs are among least capitalised banks in the world, say experts

In FY18, on an average, public sector banks reported tier-I capital ratio of 8.4 %, against global average of 14.1%

PSB losses to come down to Rs 500 billion in FY19, says CRISIL report

Profits for the entire banking system are expected to start improving from the second half of this fiscal

Street turns positive on PSBs; RBI's OMO helps Nifty PSU Bank index gain

PSBs are major investors in G-Secs

Govt to consider PSBs' demand to relax PCA framework for banking system

Finance Minister Arun Jaitley held the annual performance review meeting of PSBs on Tuesday and discussed wide-ranging issues, including the need for early capitalisation of banks this fiscal year

Govt appoints 14 general managers as executive directors in different PSBs

Shanti Lal Jain and Vikramaditya Singh Khichi have been appointed as executive directors in the Bank of Baroda initially for a period of three years

Under bond market pressure, PSBs stare at Rs 75-90 bn MTM loss this quarter

Already weighed down by a pile-up of bad loans, bond market pressure is making the situation worse for public sector banks

More freedom, flexibility given to bank boards now, says Ravi Venkatesan

In that sense, BoB and SBI has a clear run way with less competition, says Venkatesan

Letter to BS: Public sector banks need greater functional autonomy

The high level of NPAs is due to combination of many factors and some of them are beyond the control of banks

Rs 3.8 trillion from 70 accounts need NCLT resolution by September: Report

The report also said state-run banks are estimated to report pre-tax loss of Rs 419-1016 billion in the current fiscal