FinMin to take call on PSU banks’ capital infusion requirements after September
5 years, 10 months ago

FinMin to take call on PSU banks’ capital infusion requirements after September

Live Mint  

The Finance Ministry will review the capital infusion requirements of PSU banks after September and there will be separate allocation for recapitalisation in the general Budget likely to be presented in July. According to official sources, by September, the capital position with regard to the regulatory requirements and growth of all the PSU banks which received funds in 2018-19 will be clear. In February 2019, the government had announced capital infusion of ₹48,239 crore into 12 public sector banks to help them maintain regulatory capital requirements and finance growth plans. Before that in December 2018, the Finance Ministry had increased capital infusion into these banks for FY19 by a combined ₹41,000 crore to ₹1.06 lakh crore from the originally planned ₹65,000 crore.

Budget Capital Banks Psu Banks Pca Psu Bank Capital Infusion  crore  pca  finance  recapitalisation  capital  finmin  banks  requirements  infusion  psu  bank

History of this topic

YSRCP govt. diverted funds meant for capital infrastructure development, says Finance Minister Payyavula Keshav
4 days, 15 hours ago

YSRCP govt. diverted funds meant for capital infrastructure development, says Finance Minister Payyavula Keshav

The Hindu  

Due to diversion of funds meant for capital infrastructure development by the previous YSRCP government during the financial year 2023-24, the Central government has cut the borrowing capacity of State government by ₹7,600 crore, according to Finance Minister Payyavula Keshav. After submitting the rectified accounts in the current financial year 2024-25, the Central government approved ₹2,000 crore, he added. The …

FinMin’s first review meeting with PSB heads post-Union Budget deferred to March 5
3 weeks, 5 days ago

FinMin’s first review meeting with PSB heads post-Union Budget deferred to March 5

Live Mint  

The finance ministry has deferred the performance review meeting with heads of public sector banks by a day to March 5, 2025. The 12 PSBs in India posted their highest-ever net profit of ₹1.29 lakh crore in the April-December period of the current fiscal year, marking an annual increase of 31.3 per cent. FinMin's performance review of PSBs During the …

Budget: Govt pegs divestment, asset monetisation proceeds at ₹47,000 cr; raises PSU dividend target to ₹69,000 cr
1 month, 3 weeks ago

Budget: Govt pegs divestment, asset monetisation proceeds at ₹47,000 cr; raises PSU dividend target to ₹69,000 cr

Live Mint  

The government expects to bring in ₹47,000 crore through disinvestment and asset monetisation in FY26, which is lower than the ₹50,000 crore it expects to get in FY25, according to estimates in the Budget documents. The lower estimate of FY26 compared with FY25 underscores the government’s approach of taking a limited number of assets to the market for strategic disinvestment …

PSU stocks tumble up to 8% as Budget 2025 lowers FY25 capex to ₹10.18 lakh crore
1 month, 3 weeks ago

PSU stocks tumble up to 8% as Budget 2025 lowers FY25 capex to ₹10.18 lakh crore

Live Mint  

Union Budget 2025: State-owned stocks, including those in the railway and defence sectors, are trading with significant losses in today's trade, February 1, due to the government's decision in the Union Budget 2025-26 to reduce the revised capital expenditure estimate for FY25 to ₹10.18 lakh crore. For FY26, Nirmala Sitharaman, in her budget for 2025-26, raised the capex target to …

Market expectations for Budget not very high, says MOSL; lists top stocks to buy before Budget 2025
1 month, 3 weeks ago

Market expectations for Budget not very high, says MOSL; lists top stocks to buy before Budget 2025

Live Mint  

Stocks to buy before Budget 2025: Market expectations are not very high for the upcoming FY26 Union Budget, according to domestic brokerage house Motilal Oswal Financial Services. Market Expectations Remain Muted MOSL noted that investor sentiment regarding government capital expenditure has remained pessimistic, particularly after witnessing a 12 per cent year-on-year decline in capital spending between April 2024 and November …

Budget: 10% increase in capex allocation likely for road, railways ministries in FY26
2 months, 2 weeks ago

Budget: 10% increase in capex allocation likely for road, railways ministries in FY26

Live Mint  

New Delhi: The Centre proposes to keep its focus on rapid infrastructure growth in the next financial year, with plans to push capex allocation for the ministries of road transport and highways, and railways in the upcoming budget by upto 10%, two persons aware of the development said. Private investment BoT projects allow private sector bidders to take construction risk …

Budget: 10% increase in capex allocation likely for road, railways ministries in FY26
2 months, 2 weeks ago

Budget: 10% increase in capex allocation likely for road, railways ministries in FY26

Live Mint  

New Delhi: The Centre proposes to keep its focus on rapid infrastructure growth in the next financial year, with plans to push capex allocation for the ministries of road transport and highways, and railways in the upcoming budget by upto 10%, two persons aware of the development said. Private investment BoT projects allow private sector bidders to take construction risk …

PSU banks to cross ₹1.5 lakh cr profit in FY’25, low deposit mobilisation concern
2 months, 3 weeks ago

PSU banks to cross ₹1.5 lakh cr profit in FY’25, low deposit mobilisation concern

Live Mint  

New Delhi, Dec 27 Low NPAs and double-digit credit growth are expected to drive profits of public sector banks past the ₹1.5 lakh crore milestone in 2024-25. Public lenders recorded their highest-ever aggregate net profit of ₹1.41 lakh crore in 2023-24 on the back of significant improvement in asset quality, credit growth, healthy capital adequacy ratio and rising return on …

Indian banks’ profitability improves for six straight years, NPAs decline to 13-year low: RBI report
2 months, 3 weeks ago

Indian banks’ profitability improves for six straight years, NPAs decline to 13-year low: RBI report

Live Mint  

The profitability of banks improved for the sixth consecutive year in 2023-24 and their gross bad debts or non-performing assets declined to a 13-year low of 2.7 per cent. "Banks’ profitability rose for the sixth consecutive year in 2023-24 and continued to rise in H1:2024-25 with the return on assets at 1.4 per cent and return on equity at 14.6 …

Gross bad assets of government banks fell from 14.58% in Mar 2018 to 3.12% in Sep 2024: Finance ministry
3 months, 1 week ago

Gross bad assets of government banks fell from 14.58% in Mar 2018 to 3.12% in Sep 2024: Finance ministry

Live Mint  

The government said on Thursday that policy reforms in the financial sector have restored the health of the banking sector, with the gross non-performing asset ratio of public sector banks falling to 3.12% in September 2024 from a peak of 14.58% in March 2018 and 4.97% in March 2015. The marked improvement also saw PSBs record their highest-ever aggregate net …

Market Cap of top 6 listed companies jumps ₹2 lakh crore; TCS, HDFC Bank lead the rally
3 months, 2 weeks ago

Market Cap of top 6 listed companies jumps ₹2 lakh crore; TCS, HDFC Bank lead the rally

Live Mint  

The combined market valuation of six out of the top 10 most-valued Indian companies soared by ₹2,03,116.81 crore last week, reflecting an optimistic sentiment on Dalal Street. Tata Consultancy Services and HDFC Bank emerged as the biggest gainers, riding the wave of a bullish trend that saw the BSE Sensex climbing 1,906.33 points and the NSE Nifty 50 advancing 546.7 …

State-run banks to raise nearly Rs 55,000 crore in bond sales for core capital boost
3 months, 2 weeks ago

State-run banks to raise nearly Rs 55,000 crore in bond sales for core capital boost

New Indian Express  

MUMBAI: Public sector banks have chalked out major debt-fund raising plans to the tune of Rs 54,800 crore by selling additional tier-1 and tier-2 bonds in the remainder of the current financial year to shore up their regulatory capital or core capital. So far in FY25, only State Bank of India and Canara Bank have issued AT-1 bonds, raising Rs …

Public sector banks grew 11% in first half of FY25, finance ministry data shows
4 months, 1 week ago

Public sector banks grew 11% in first half of FY25, finance ministry data shows

Live Mint  

Public-sector banks have maintained their strong performance, reporting 11% on-year growth in aggregate business at ₹236.04 trillion in the first half of FY25, the finance ministry said in a statement on Tuesday. 133.75 trillion, respectively, in the first half of the financial year, the ministry said. Banking reforms The finance ministry attributed the improved performance to banking reforms such as …

Government to Focus on Professionalism, Professionalism of PSUs for Value Creation
4 months, 3 weeks ago

Government to Focus on Professionalism, Professionalism of PSUs for Value Creation

Live Mint  

The Indian government plans to make public sector units (PSUs) more efficient, professional and profitable in the long term rather than sell them early. The focus is on getting them more professionally run, so that their decisions be more board-driven, across sectors, irrespective of whether it is in the strategic or the non-strategic.

Private capex to pick up, ₹4 lakh crore credit demand pipeline from India Inc: SBI Chairman
5 months, 3 weeks ago

Private capex to pick up, ₹4 lakh crore credit demand pipeline from India Inc: SBI Chairman

The Hindu  

Setty has said the bank has already got ₹4 lakh crore strong credit pipeline from India Inc and expressed hope that capital expenditure by the private sector is expected to pick up in the second half of the fiscal year. As far as public spending is concerned, Finance Minister Nirmala Sitharaman in the Budget proposed to raise the capital expenditure …

Budget 2024: How much defence funding was allocated during the interim budget passed in February?
8 months ago

Budget 2024: How much defence funding was allocated during the interim budget passed in February?

India TV News  

In a modest hike, the government had in its last interim budget, increased the defence budget to Rs 6.21 lakh crore for 2024-25 from last year's allocation of Rs 5.94 lakh crore and announced an ambitious scheme for "deep-tech" technologies in the military domain. In the interim Union budget presented in Parliament by Finance Minister Nirmala Sitharaman in February, a …

The government’s stake-selling agenda: If not now, then when?
8 months, 2 weeks ago

The government’s stake-selling agenda: If not now, then when?

Live Mint  

Markets have been hitting new highs almost every week and the total wealth in equity assets has also risen to all-time highs. As per media reports, promoters of over 200 companies have cumulatively sold stock worth around $4 billion in the last two months alone, taking advantage of richer valuations and cashing-in on the equity they hold. This prompted the …

State Bank of India to raise USD 3 billion through debt in FY2025, shares rise
9 months, 1 week ago

State Bank of India to raise USD 3 billion through debt in FY2025, shares rise

Live Mint  

India's largest lender State Bank of India, announced on June 11 that its board has approved a plan to raise up to $3 billion through debt in the current financial year, as per an exchange filing. The state-owned financial institution plans to secure the funds in multiple tranches via either a public offering or private placement of senior unsecured notes. …

PSU banks count on new coalition government for more lucrative PLI for employees
9 months, 2 weeks ago

PSU banks count on new coalition government for more lucrative PLI for employees

Hindustan Times  

PSU banks are hopeful of a more lucrative performance-linked incentive for employees as a new coalition government takes charge, the Economic Times reported. “Some of the parameters governing the PLI, like the final settlement, should not be only based on operating profit, but take into account performance on other financial parameters,” another bank executive told the Economic Times. "While banks …

5 PSU Banks To Lower Govt Shareholding To Comply With MPS Norms: DFS Secretary
1 year ago

5 PSU Banks To Lower Govt Shareholding To Comply With MPS Norms: DFS Secretary

ABP News  

Five public sector lenders, including Bank of Maharashtra, IOB and UCO Bank are planning to reduce government stake to less than 75 per cent to comply with Sebi's minimum public shareholding norms, Financial Services Secretary Vivek Joshi has said. It is followed by Chennai-based Indian Overseas Bank at 96.38 per cent, UCO Bank 95.39 per cent, Central Bank of India …

Budget 2024: More Power to Infrastructure as Capex Outlay Increased to Rs 11.11 Lakh Crore
1 year, 1 month ago

Budget 2024: More Power to Infrastructure as Capex Outlay Increased to Rs 11.11 Lakh Crore

News 18  

Ensuring more power to infrastructure development for economic growth and employment creation, a large sum of Rs 11,11,111 crore has been set aside as the capital expenditure outlay in the interim budget 2024. “Building on the massive tripling of the capital expenditure outlay in the last four years, resulting in a huge multiplier impact on economic growth and employment creation, …

Indian Railways likely to get boost in capital expenditure in upcoming Budget
1 year, 2 months ago

Indian Railways likely to get boost in capital expenditure in upcoming Budget

India Today  

The Indian Railways is likely to see a major surge in capital expenditure in the upcoming interim budget scheduled for February 1, according to a report by Business Today. The Interim Budget for the fiscal year 2024-25 is likely to allocate between Rs 2.8-3 lakh crore for the Railways, aiming to maintain the momentum of capital expenditure, in contrast to …

FinMin revises letter, scotches PSU bank merger speculation
1 year, 3 months ago

FinMin revises letter, scotches PSU bank merger speculation

Live Mint  

The Union finance ministry has rectified the agenda of a parliamentary committee meeting scheduled for early next year, putting an end to speculation of a potential merger of public sector banks—UCO Bank with Union Bank of India, and Bank of India with Bank of Maharashtra. In a letter addressed to, among others, the bank chiefs of the four PSU banks …

PNB market cap surpasses ₹1 lakh crore; third PSU bank to achieve feat
1 year, 3 months ago

PNB market cap surpasses ₹1 lakh crore; third PSU bank to achieve feat

Live Mint  

Within the universe of PSU banking stocks, Punjab National Bank has emerged as a standout performer, showcasing remarkable resilience and performance throughout the current year. This outstanding performance catapulted the bank's market capitalisation beyond the ₹one lakh crore milestone in today's trade, making it the third public sector bank to achieve this significant feat. The bank's pre-provision operating profit came …

Canara Bank was top lender to public sector cos in FY23
1 year, 7 months ago

Canara Bank was top lender to public sector cos in FY23

Live Mint  

Public Sector Banks lent ₹4.12 trillion to state-backed corporations and public sector undertakings during 2022-23, down from ₹4.93 trillion during the previous year, finance minister Nirmala Sitharaman informed Parliament in a written response on Monday. Responding to questions by member of parliament, Velusamy P, Sitharaman informed the Lok Sabha that Canara Bank led the lending during 2022-23 to government backed …

Net profit of PSBs almost tripled to ₹1.04 lakh in FY2022-23: FM Sitharaman
1 year, 8 months ago

Net profit of PSBs almost tripled to ₹1.04 lakh in FY2022-23: FM Sitharaman

Live Mint  

Finance Minister Nirmala Sitharaman on Saturday appreciates the state-run banks for becoming profiteering. According to the union Finance Minister, the net profit of public sector banks has almost tripled to ₹1.04 lakh crore in fiscal 2022-23. "The Non-Performing Assets of the Indian banks is estimated to reduce further to a decadal low of 3.8% by end of FY 2023-24," Sitharaman …

Budget 2023 | Govt to borrow record ₹15.4 lakh crore in FY24 to bridge revenue gap
2 years, 1 month ago

Budget 2023 | Govt to borrow record ₹15.4 lakh crore in FY24 to bridge revenue gap

The Hindu  

The government plans to borrow a record ₹15.4 lakh crore from dated securities in FY24 to meet its expenditure requirement to prop up the economy. Finance Minister Nirmala Sitharaman while presenting the Budget on February 1 said the net market borrowings from dated securities are estimated at ₹11.8 lakh crore to finance the fiscal deficit in 2023-24. The gross market …

Budget 2023: Key takeaways from Nirmala Sitharaman's announcements
2 years, 1 month ago

Budget 2023: Key takeaways from Nirmala Sitharaman's announcements

Hindustan Times  

The Narendra Modi government at the Centre will focus on economic growth and job creation and cut down the fiscal deficit, Union finance minister Nirmala Sitharaman said on Wednesday, presenting its last full budget in Parliament before the 2024 election. She also said the enhanced capex of ₹10 lakh crore for infrastructure development is at 3.3 per cent of the …

Budget 2023: Key Highlights From Modi Govt's Final Full Budget Before 2024 LS Polls
2 years, 1 month ago

Budget 2023: Key Highlights From Modi Govt's Final Full Budget Before 2024 LS Polls

ABP News  

Finance Minister Nirmala Sitharaman on Wednesday tabled the final full Budget of the NDA-II government. At Rs 10 lakh crore, the central goverment's capex target for 2023-24 is 33 per cent higher than the Budget Estimate of Rs 7.5 lakh crore for 2022-23. This Budget provides for Rs 35,000 crore capital investment towards energy transition and net zero objective and …

Budget 2023 | Highest-ever capital outlay of ₹2.4 lakh crore for Railways
2 years, 1 month ago

Budget 2023 | Highest-ever capital outlay of ₹2.4 lakh crore for Railways

The Hindu  

The Union Budget has proposed a record budgetary allocation of ₹2.40 lakh crore for the Indian Railways on February 1. Overall, the government proposed to increase capital expenditure outlay by 33% to ₹10 lakh crore in 2023-24, which would be 3.3% of the GDP, said Ms. Sitharaman. With the substantial increase, it is central to government’s efforts to enhance growth …

ECONOMIC PERSPECTIVES | Is a reversal of bank nationalisation on the cards?
2 years, 1 month ago

ECONOMIC PERSPECTIVES | Is a reversal of bank nationalisation on the cards?

The Hindu  

Published : Jan 26, 2023 10:25 IST The semi-annual Financial Stability Report from the Reserve Bank of India signals that the country’s banking system, especially the public banking system, has put behind it the stress from disturbingly high non-performing or bad loans on its books. The asset quality review resulted in an increase in the volume of recorded gross NPAs …

PSU Bank stocks’ valuations attractive, Motilal Oswal names 3 top picks
2 years, 2 months ago

PSU Bank stocks’ valuations attractive, Motilal Oswal names 3 top picks

Live Mint  

Public sector banks have been consistent performers on the Street in last one year and if experts estimates are to go by, their earnings growth will sustain going ahead aided by improved loan growth, margins and controlled credit costs. PSU banks have progressed a lot in past 5 years with profitability of of top seven PSBs improving to an estimated …

Banks write off loans worth Rs 11.17 lakh crore in last 6 years
2 years, 3 months ago

Banks write off loans worth Rs 11.17 lakh crore in last 6 years

Deccan Chronicle  

NEW DELHI: Banks have written off Rs 11.17 lakh crore bad loans from their books in the last six years till financial year 2021-22, Parliament was informed on Tuesday. "As per RBI data, public sector banks and scheduled commercial banks wrote off an aggregate amount of Rs 8,16,421 crore and Rs 11,17,883 crore respectively during the last six financial years," …

PSU banks to pass up bonds to focus on lending: Experts
2 years, 3 months ago

PSU banks to pass up bonds to focus on lending: Experts

Live Mint  

Indian state-run banks that sold government bonds in the last few sessions may not immediately turn buyers, as their focus shifts to cutting down investment under the Statutory Liquidity Ratio to fund credit growth, analysts said. State-run banks sold bonds worth more than ₹30,400 crore, on a net basis, in the 25 trading sessions through Dec. 6, data from the …

Budget 2022: Proposals on increased infra capex, MSMEs, to largely benefit banking sector
3 years, 1 month ago

Budget 2022: Proposals on increased infra capex, MSMEs, to largely benefit banking sector

Firstpost  

The multiple Budget announcements pertaining to increase in capital expenditure on infrastructure as also incentives for the MSME sector, besides others, are likely to prove largely beneficial for the banking sector going forward. The banking sector will benefit, from increased infra spending as it has been witnessing single digit credit growth for past many years. Further, the Credit Guarantee Trust …

Centre unlikely to announce capital infusion for PSU banks in Budget 2022-23
3 years, 3 months ago

Centre unlikely to announce capital infusion for PSU banks in Budget 2022-23

Firstpost  

Finance Minister Nirmala Sitharaman is expected to present the fourth budget of the Modi 2.0 government on 1 February New Delhi: The government is unlikely to announce capital infusion for public sector banks in the upcoming Budget, as their financial health has improved on the back of reduction in bad loans, sources said. During the last financial year, PSBs raised …

Govt unlikely to announce capital infusion for PSU banks in Union Budget 2022
3 years, 3 months ago

Govt unlikely to announce capital infusion for PSU banks in Union Budget 2022

India TV News  

Govt unlikely to announce capital infusion for PSU banks in Union Budget 2022 Finance Minister Nirmala Sitharaman is expected to present the fourth budget of the Modi 2.0 government on February 1. The government is unlikely to announce capital infusion for public sector banks in the upcoming Budget, as their financial health has improved on the back of reduction in …

PSU banks mobilise record fund of ₹58,700 crore from markets in FY21
3 years, 7 months ago

PSU banks mobilise record fund of ₹58,700 crore from markets in FY21

Live Mint  

Notwithstanding economic disruptions caused by the pandemic, public sector banks have managed to raise a record ₹58,700 crore from markets in FY2020-21 through a mix of debt and equity to enhance capital base. Punjab National Bank mobilised ₹3,788 crore through share sale on private placement basis during the financial year ended March 31, 2021. In addition, 12 PSBs raised funds …

Bank Privatisation: Central Bank of India, Indian Overseas Bank May Be Privatized This Fiscal
3 years, 9 months ago

Bank Privatisation: Central Bank of India, Indian Overseas Bank May Be Privatized This Fiscal

News 18  

The Centre could privatise the two-state run banks — Central Bank of India and Indian Overseas Bank soon, according to report by Times of India. NITI Ayog, the government think-tank has recently submitted a report to the core group of secretaries on Disinvestment mentioning the names of the two banks the would be privatised this fiscal, news agency PTI mentioned. …

FinMin releases ₹45,000 crore to States as additional devolution on buoyant Q4 revenue mop-up
3 years, 11 months ago

FinMin releases ₹45,000 crore to States as additional devolution on buoyant Q4 revenue mop-up

The Hindu  

The Finance Ministry on Thursday said it has released ₹45,000 crore to the States as additional devolution in the 2020-21 fiscal following revenue buoyancy in the March quarter. As per the Revised Estimates for 2020-21, ₹5,49,959 crore, being 41 per cent of the shareable pool of taxes and duties were estimated to be released to the states. However, the Finance …

Govt to amend two Acts to enable privatisation of PSU banks
4 years, 1 month ago

Govt to amend two Acts to enable privatisation of PSU banks

India TV News  

To facilitate privatisation of public sector banks, the government is likely to bring amendments to two legislations later this year. The ongoing Budget session is scheduled to take up as many as 38 Bills including the Finance Bill 2021, Supplementary Demands for Grants for 2020-21 and related Appropriation Bill, National Bank for Financing Infrastructure and Development Bill, 2021, and Cryptocurrency …

Union Budget 2021: Sitharaman defends privatisation of PSBs in interview with News18, says India needs more efficient banks
4 years, 1 month ago

Union Budget 2021: Sitharaman defends privatisation of PSBs in interview with News18, says India needs more efficient banks

Firstpost  

In an exclusive interview to CNN-News18’s Rahul Joshi after unveiling the Union Budget 2021 on Monday, Union minister Nirmala Sitharaman weighed in on the key takeaways from the budiget and defended the Centre’s push for disinvestment, including two public sector banks. Speaking to Network18 Group Editor Rahul Joshi, Sitharaman said that the Centre is looking at setting up a holding …

Engaging With RBI on Privatisation of Govt-Run Banks in Big Way, Can't Have Laggards: Nirmala Sitharaman
4 years, 1 month ago

Engaging With RBI on Privatisation of Govt-Run Banks in Big Way, Can't Have Laggards: Nirmala Sitharaman

News 18  

Finance minister Nirmala Sitharaman on Monday told the News18 Network that the government had engaged with the Reserve Bank of India in a “big way” as she outlined a timeline for meeting divestment targets set in her Budget 2021 speech. Speaking to News18 Network’s Editor-in-Chief Rahul Joshi, the finance minister said that the country needs efficient banks for the economy …

Union Budget 2021: Centre allocates Rs 4.78 lakh crores for defence ministry, hikes capital outlay by 19%
4 years, 1 month ago

Union Budget 2021: Centre allocates Rs 4.78 lakh crores for defence ministry, hikes capital outlay by 19%

Firstpost  

The total outlay of Rs 4.78 lakh crore included an allocation of Rs 1.15 lakh crore for payment of pensions New Delhi: At a time Indian and Chinese troops are locked in a standoff in eastern Ladakh, the government on Monday increased the capital outlay for the armed forces by nearly 19 percent while allocating a total of Rs 4.78 …

Economic Survey 2021: Under-Capitalisation of Banks Will Hamper Economic Growth in Long Run
4 years, 1 month ago

Economic Survey 2021: Under-Capitalisation of Banks Will Hamper Economic Growth in Long Run

News 18  

The Economic Survey 2021, released on January 29 ahead of the Union Budget 2021, has called for adequate capitalisation of public sector banks flagging fears of lenders resorting to risk-shifting, which will, in turn, impact the economy which has just begun its upward rise months after the crippling impact of the Covid-19 pandemic. Public sector banks account for 60 per …

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address
4 years, 1 month ago

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address

News 18  

With the Union Budget less than a week away, stakeholders in the banking sector expect the Centre to go beyond recapitalisation of bonds to infuse capital in public sector banks. The RBI’s stress test recently revealed that bank NPAs could jump from 7.5 per cent in September last year to 13.5 per cent by September this year. The gross non-performing …

RBI Raises Concerns Over Zero-coupon Bond for PSB Recapitalisation, Talks on With Govt for Solution
4 years, 2 months ago

RBI Raises Concerns Over Zero-coupon Bond for PSB Recapitalisation, Talks on With Govt for Solution

News 18  

New Delhi: The Reserve Bank of India has expressed some concerns over zero-coupon bonds for the recapitalisation of public sector banks and discussion is on between the central bank and Finance Ministry to find a solution, according to sources. The government resorted to recapitalisation bonds with a coupon rate for capital infusion into PSBs during 2017-18 and interest payment to …

India considers creating bank with $13.7 billion equity capital to fund roads
4 years, 2 months ago

India considers creating bank with $13.7 billion equity capital to fund roads

Hindustan Times  

India is considering a proposal to create a bank to help fund port, road and power projects as Prime Minister Narendra Modi’s administration aims to lift Asia’s third-largest economy out of the recession. India faces the challenge of boosting spending on productive assets that aid economic growth after being forced to direct the bulk of stimulus last year on the …

Finance Ministry May Provide Capital Support Worth Rs 20,000 crore to Public Sector Banks in 3rd Quarter
4 years, 5 months ago

Finance Ministry May Provide Capital Support Worth Rs 20,000 crore to Public Sector Banks in 3rd Quarter

News 18  

The Finance Ministry is likely to provide capital support from the Rs 20,000 crore fund approved by Parliament in recently concluded session to some Public Sector Banks in the third quarter itself. In the last financial year, Punjab National Bank got Rs 16,091 crore, Union Bank of India received Rs 11,768 crore while Canara Bank and Indian Bank got Rs …

The battle to save banks
4 years, 6 months ago

The battle to save banks

India Today  

The battle for saving banks has been a long drawn one. Speaking at the seventh SBI Banking and Economics Conclave in July, RBI governor Shaktikanta Das said: “The economic impact of the pandemic due to the lockdown and the anticipated post-lockdown compression in economic growth may result in higher NPAs and capital erosion of banks. A recapitalisation plan for PSBs …

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