Page 18 - Psbs

Rs 6,000-crore equity held back from laggard state-run banks

The Centre did not release around Rs 6,500 crore to 13 public sector banks (PSBs) in 2016-17 under the Indradhanush plan as none of the banks met the performance standards."The government allocated a sum of Rs. 22,915 in 13 PSBs during the FY 2016-17 under the first tranche of capital infusion out of which a sum of Rs.16,414 (75%) was infused upfront," the Ministry of Finance said in a statement on Wednesday.The remaining amount of Rs 6501 crore was supposed to be infused based on the performance of the respective PSBs. "However, none of the banks could achieve the set targets and therefore, the remaining 25% of the allocated capital has not been released so far," the Ministry said.The Central government had announced Indradhanush in 2015 to infuse Rs 70,000 crore out of budgetary allocation in state-owned banks over four financial years to meet their capital requirements in a bid to remain compliant with Basel III norms - international standards for banks to deal with risk ...

Valuation gap between public sector and private banks narrows

Price-to-book value ratio of state-owned banks jumped from 0.9x to 1.15x in a day, while private banks traded lower at 3.42x

PSBs need more than budgeted capital infusion: Mundra

RBI identified stressed accounts each having more than Rs 5,000 crore of outstanding loans

PSBs need four times more capital than govt allocation: Moody's

Lower market valuations was biggest hindrance if PSBs chose to raise fresh equity from markets

Optimism towards PSBs may not last

The private sector banks have high valuations and can raise cash to meet Basel-III norms

After merger of 5 associates with SBI, Govt keen to consolidate more PSBs

Merger proposals in banking sector would require clearance from the Competition Commission of India

FinMin in talks with PSBs to assess next 3-year growth, funding plans

In second tranche of capital infusion, government infused Rs 8,586 crore in 10 banks in March

Govt will nudge 6 PSBs to raise funds in line with Indradhanush plan

This will ease the pressure on the exchequer of pumping in capital

Want to short public sector banks? Look beyond Nifty Bank

Nifty Bank is not a good representative of the sector in many ways

Not just SBI: PNB, BoB, BoI also charge for defaulting on minimum balance

PNB, BoB, BoI, Canara Bank already charge customers for failing to maintain a minimum balance

Solvency position of PSBs worsens

If banks were to provide for all these bad loans, it would wipe off 63% of their net worth

Recovery bogey haunts 5 PSBs with high NPAs

Slippages have moderated in Q3 but delays in resolution of bad loans are making life difficult

PSBs' stress level down with better recoveries

This does, said bankers, give them confidence on follow-up action

New AT1 rules double PSBs' debt servicing ability to Rs 2.3 lakh crore

Global rating agency Fitch welcomed the move, saying this will also help them raise domestic capital

PSBs need equity worth about Rs 2 lakh crore by March 2019

REITs and InvITs are vehicles created to primarily invest in revenue-generating real estate assets

PSBs need equity worth Rs 1.7 lakh cr by March 2019: Study

Report highlighted that credit enhancement would be important in making corporate bonds attractive

Government to soon finalise 2nd tranche of capital infusion in PSBs

The government has already announced fund infusion of Rs 22,915 crore

4 PSBs may default on AT-1 bonds' coupon

Continued losses erase revenue reserves

Listed PSBs in red for a third quarter

Pace of additions to NPAs slower but provisioning pressure will continue for a while

Top 100 borrowers owe PSBs Rs 13.71 lakh crore

The wilful defaulters as a percentage of GNPAs as on March 2016 was 16.09%