Page 26 - Public Sector Banks

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

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

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

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

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

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

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

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%

Financial conditions looking up in Q2 due to steps by govt, RBI: CII-IBA

The cost of fund index and liquidity index are showing an impressive reading of 80.6 and 71.1 in the present quarter survey

No pressure from govt to participate in MSME scheme, says SBI chief

Leading bankers welcome term loan installment moratorium announced as economic relief

Another flaw in PSBs

Containing frauds will need wider reform

PSBs to need Rs 2.1 trn over next 2 yrs; govt support to continue: Moody's

According to Moody''s, the sharp slowdown in India''s economic growth, exacerbated by the virus outbreak, will hurt the asset quality of public sector banks (PSBs) and drive up credit costs

Indian PSBs face fresh capital shortages as coronavirus bites: Moody's

Uncertainty surrounding India's economic recovery and the ongoing clean-up of balance sheets are making it difficult for banks to raise equity capital from markets, it says

Need to divest governance of PSBs from govt: Former RBI deputy governor

Privatisation is a bigger political decision and not an economic one alone, Vishwanathan said, adding that a bank holding company needs to be created first

Govt may not need to infuse fresh capital in PSU banks this fiscal: Report

The poor credit offtake on account of coronavirus pandemic may obliterate the need for significant growth capital during the current fiscal

Mismanaged transitions

Governments have followed different rules for different banks at different times