Page 25 - Public Sector Banks
In the wonderland of regulation
A plethora of regulations is never the answer to identified regulatory gaps
PSBs on-board 10 mn account holders on digital payment modes in a month
The campaign, aimed at encouraging customers to use digital banking channels, was launched on August 15 under the aegis of the government's Digital India initiative
 "PSBs on-board 10 mn account holders on digital payment modes in a month")
Banks sanctioned Rs 1.77 trn to MSMEs under ECLGS: Nirmala Sitharaman
Nirmala Sitharaman said that around Rs 1.77 trn credit has been sanctioned by PSBs and private banks to MSMEs and individuals reeling under the slowdown caused by the coronavirus pandemic
 "Banks sanctioned Rs 1.77 trn to MSMEs under ECLGS: Nirmala Sitharaman")
Industry pitches for 'fiscal future road map' with medium term goals
India Inc made a case for announcing a fiscal future road map with medium term goals and recapitalising of public sector banks
 "Industry pitches for 'fiscal future road map' with medium term goals")
On the same page: Rajan, Acharya suggest 'bad bank' for distressed assets
According to the paper, private asset management and national asset management ''bad banks'' should be encouraged in parallel to the online platform for distressed loan sales
BBB recommends 13 names for appointment as executive directors in PSU banks
The Banks Board Bureau (BBB) has recommended to the government names of 13 general managers of various public sector banks (PSBs) for appointment as executive directors
Ind-Ra cuts banking outlook to negative on rising NPA, credit cost
As per Ind-Ra's bear case, the spike in stressed assets due to pandemic is expected to double the credit costs for banking system
 "Ind-Ra cuts banking outlook to negative on rising NPA, credit cost")
Govt's stake divestment to be credit negative for public sector banks: Icra
The proposed divestment of the Centre's majority stake in certain PSBs will be credit negative for these lenders, ratings agency ICRA said
 "Govt's stake divestment to be credit negative for public sector banks: Icra")
Divesting majority stake credit negative for PSBs leaning on govt: Icra
Their credit ratings have been primarily supported by their sovereign ownership and their stable deposit base, which again is a function of their ownership
 "Divesting majority stake credit negative for PSBs leaning on govt: Icra")
Debt restructuring scheme may soften blow of Covid-19 on books of PSBs
Except for a few, most PSBs face major challenges in raising capital from the market, given the low premium
 "Debt restructuring scheme may soften blow of Covid-19 on books of PSBs")
Animal spirits: Right and wrong
It is true that though both low spirits and low real investment may be caused by a common set of economic factors
Govt to infuse Rs 20,000 crore in PSBs via recap bonds; should you buy?
Analysts suggest that given weak balance sheets and low recap amount, outlook for the public sector banks continue to remain bleak
Govt to infuse Rs 20,000 cr in public sector banks; seeks parliamentary nod
The government has infused Rs 3.5 trillion in PSBs in the last few years, with the previous round of recapitalisation taking place in September 2019
 "Govt to infuse Rs 20,000 cr in public sector banks; seeks parliamentary nod")
Govt to infuse Rs 20,000 cr in public sector banks; seeks parliamentary nod
The government has infused Rs 3.5 trillion in PSBs in the last few years, with the previous round of recapitalisation taking place in September 2019
 "Govt to infuse Rs 20,000 cr in public sector banks; seeks parliamentary nod")
No proposal for raising FII limit in public sector banks to 49%: Thakur
There is no proposal for raising FII ceiling in public sector banks to 49 per cent from 20 per cent for capital mobilisation, Minister of State for Finance Anurag Singh Thakur informed the Lok Sabha
Spike in bank frauds: Lag in reporting or weak internal controls?
Bank fraud numbers may not be as bad as they are made out to be, but their detection and reporting need to improve, writes Raghu Mohan
 "Spike in bank frauds: Lag in reporting or weak internal controls?")
Sitharaman launches doorstep banking initiative by public sector banks
Finance Minister Nirmala Sitharaman on Wednesday launched a doorstep banking services initiative by public sector banks (PSBs) which will provide convenience to customers. This is part of EASE (enhanced access and service excellence) reforms that the Department of Financial Services had undertaken in 2018. Now, one can bank from home with the finance minister launching the doorstep service initiative of PSBs, Financial Services Secretary Debasish Panda said. Customer convenience and comfort will be the top priority in the entire process, he added. Asserting that EASE reforms have resulted in improving various financial parameters of PSBs, Panda said there has been a six-fold increase in the number of profitable lenders in the last two years. Recalling the hassle-free transfer of money under the Aatmanirbhar Bharat package and Pradhan Mantri Garib Kalyan Yojana, he said despite the COVID-19 lockdown there was seamless fund transfer in accounts of crores of beneficiaries. As part o
Explained: How to solve the financial sector's capital shortfall
Given that PSBs account for 90% of the shortage, a credible divestment plan would reveal some well-capitalised suitors among private banks
 "Explained: How to solve the financial sector's capital shortfall")
New PSL norms may not be an immediate game changer for banking sector
Given the systemic risk aversion, credit growth may take a few quarters to revive on the back of these norms
 "New PSL norms may not be an immediate game changer for banking sector")
Indian private banks to gain market share from PSBs: Fitch Ratings
Indian private banks have had a decade of strong growth, reflected in much higher loan CAGR of 19.6%
 "Indian private banks to gain market share from PSBs: Fitch Ratings")