Page 42 - Public Sector Banks

Banks with strong networks will find takers

In terms of asset quality, for instance, IOB and UCO Bank are the worst placed as they had the highest gross NPA

Use rally to exit PSBs, say analysts

Despite various measures, these banks are not out of the woods

Budget credit-negative for PSBs: Moody's

The Union Budget is credit negative for public sector banks as lower capital infusion announced by the government will be insufficient for lenders in a rising NPAs scenario, global rating agency Moody's said today. The government has stuck to the capital infusion roadmap that was announced last year, budgeting only Rs 25,000 crore capital injections for the public sector banks in the fiscal 2016-2017. As per Capitaline data, gross non-performing assets of 39 listed banks surged to Rs 4.38 lakh crore in the December quarter, up from Rs 3.4 lakh crore in the September quarter. Most of them are contributed by state-run banks. The only silver-lining in the Budget was that the government was open to infuse more capital as and when needed. "The Budget is largely credit negative for public sector banks as the planned capital allocation for the coming fiscal year will likely be insufficient due to the sector's increased recognition of NPAs," Moody's said in a report. It further said ...

At Rs 4 lakh cr, bad loans exceed market value of PSBs

Bad loans of private sector banks are just about 6.6% of their total valuation

PSBs' credit profile at risk without more capital: Fitch

The central bank had nudged all lenders, public and private, to identify all stressed accounts and significantly raise provisioning over two quarters

ICRA expects bank stress to continue for three years

ICRA lowered the ratings of Oriental Bank of Commerce's outstanding long-term bonds, including Tier-I capital bonds