Page 36 - Public Sector Banks

Letter to BS: The animal spirit is visible in much-needed action by govt

Tax relief in FPIs by rolling back surcharge and simplifying the KYC norms will definitely boost the sentiments of foreign investors and more wealth will be generated with new investment

Mini Budget: FPI surcharge rolled back; no angel tax for start-ups

PSBs get Rs 70,000 crore; home, auto loans to become cheaper

Govt to infuse Rs 70,000-cr capital into public sector banks: FM Sitharaman

The capital infusion, ahead of the festive season, will boost banks' lending capacity by an additional Rs 5 trillion

Soon, get home and car loans online in 59 minutes from state-run banks

Currently, the portal gives in-principle approval for loans of up to Rs 1 crore to micro, small and medium enterprises in just 59 minutes or less than an hour

150,000 bankers to discuss how to make India $5-trillion economy by 2024

To contain high bad loans in the MUDRA scheme, the managers suggested that a national portal be floated to verify the borrower and whether multiple lending has happened

UBI mulls special loan offers for start-ups, brainstorms on $5-trn GDP goal

The PSB has organised a meeting of all branch heads wherein collective consultative and ideation process was undertaken to align banking with national priorities

Govt adopts a new approach to bring reforms in public sector banks

FinMin has asked govt-owned banks to capture 42 questions on credit, non-performing assets, Mudra loans, agriculture

FinMin asks PSBs to begin consultation process to achieve $5-trn economy

It also aims to find out the role of PSBs as active partners in the Indian growth story for the next five years

Should borrowers opt for an RLLR-based home loan over an MCLR-linked one?

A reduction in MCLR is good news for home loan borrowers

Banks to get two-year guarantee to purchase 'pooled assets' of NBFCs

The government has allowed the NBFCs and HFCs to buy back their assets 'after a specified period of 12 months' as a repurchase transaction, on a right of first refusal basis

Govt issues guidelines for Rs 1 trillion partial guarantee scheme for NBFCs

The Centre has issued guidelines on operationalising Rs 1-lakh crore partial guarantee scheme under which public-sector banks can purchase high-rated pooled assets of financially sound non-banking finance companies (NBFCs). NBFCs, including housing finance companies (HFCs), came under stress following series of defaults by the group companies of IL&FS in September last year. To help the sector come out of the stress, Finance Minister Nirmala Sitharaman in the Budget announced support for fundamentally sound NBFCs in getting continued funding from banks. "For purchase of high-rated pooled assets of financially sound NBFCs, amounting to a total of Rs 1 lakh crore during the current financial year, the government will provide one-time six months' partial credit guarantee to public sector banks for first loss of up to 10 per cent," she had said. In pursuance of that the finance ministry last week released a detailed guidelines for this with the objective to address temporary asset ...

From Axis Bank to RBL, private banks have their task cut out in FY20

With additional challenges such as fresh stress, loan growth, and escalating costs, the sector faces a tough year ahead

Letter to BS: MSME loans, especially NPAs in Mudra, is a cause for concern

The overall slowdown in the economy plus lending to the now problematic real estate sector will impact the asset quality of the non-banking institutions

After 12 years, RBI set to modify fit-and-proper norms for bank directors

Categories of directors to be streamlined; other regulators' views on candidates to be looked at closer

Letter to BS: Nationalisation opened up avenues for large-scale employment

Only after the nationalisation did "class banking" become "mass banking"

Centre likely to hire public sector bank EDs through lateral entry

A senior official in the finance ministry said the idea was to create specialised positions for whole-time directors in PSBs

PSU banks losing lead relationships to private banks, says study

SBI is the only outlier in this trend, which has moved faster and made more progress than other PSU banks

Recapitalisation of PSU banks will improve investor sentiment: Analysts

Experts believe there is enough opportunities for growth as capital infusion will address growth requirement of 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 ...

Finance Ministry to monitor rate-cut transmission by public sector banks

RBI Governor Shaktikanta Das had expressed concerns over the slow transmission of interest rates to benefit customers, despite successive policy rate cuts