Page 28 - Public Sector Banks

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

RBI's curb on current account use may hit private banks in the short term

Move can also bring a huge change in the way business is done in India, where firms use multiple current accounts, often for even individual projects, making them difficult to monitor

Govt to work on a recap plan after evaluating the impact of moratorium

For now, the government has told state-owned banks to raise money from the markets

Cut stake in top public sector banks to 51% in 12-18 months: RBI to govt

Proposal to prune stake to 51% in six banks may fetch over Rs 43,000 crore

Red lights flashing in PSBs make fresh equity injections imperative

Fresh equity injections have become significantly more imperative, as economic recovery remains shaky due to continued acceleration in new coronavirus cases

Efforts to cut bad loans to come out of PCA framework: Indian Overseas Bank

IOB, which is under the Reserve Bank of India's PCA framework, had last posted profit in June 2016

RBI is ahead of the curve; govt and bureaucracy behind: Viral Acharya

In an interview with Tamal Bandyopadhyay, Acharya says why some weak public sector banks should be "re-privatised" and foreign banks should be allowed a larger play

Govt stands behind financial sector for India's growth, says PM Modi

Banks, NBFCs give lowdown on credit flow to PM; present ideas on financial inclusion, housing finance

Banks and the contagion

The interconnectedness of the banking sector and the contagion is there for us to see

Treasury gains to aid Q1 profitability of public sector banks: Analysts

Besides the impact of Covid-19, sluggish loan growth due to merger integration, moratorium and delay in the resolution of NCLT accounts are some of the factors that are likely to dent earnings

Govt to soon come out with a list of strategic sectors: DEA Secretary

Finance Minister Nirmala Sitharaman had in May announced that there will be a maximum of four public sector companies in strategic sectors

Why don't PSBs invoke personal guarantees? SC questions govt on bad loans

Plea in SC claimed around Rs 1,900 crore are lost every day due to PSBs not invoking personal guarantees of big corporate loan defaulters.

Why don't PSBs invoke personal guarantees of promoters: SC on bad loans

Top court asks Finance Ministry to look into plea that claims a loss of hundreds of crore every day due to loan defaults

Driving the private sector

R C Bhargava finds the idea of reforming a public sector undertaking and making it competitive and a wealth-creator almost an impossibility

Letter to BS: Banks must redefine strategy amid Covid-19 pandemic

Pressure on profits, moderate growth in business, need for higher capital and reduced credit appetite will be some of the features common to all banks in the current fiscal year

Banks sanction Rs 1.23 trn loans to MSMEs under credit guarantee scheme

This data is as of July 15. However, at Rs 68,000 crore, the disbursed amount is 23 per cent of the promised Rs 3 trillion.