Economic Survey 2021: Under-Capitalisation of Banks Will Hamper Economic Growth in Long Run
3 years, 10 months 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 cent of the assets in the Indian banking system and are under government ownership. Banks require capital to meet the mandatory reserve requirements laid out by the Reserve Bank of India, make provisions for bad loans and kick-start the lending cycle when demand revives in the economy. In August 2020, rating agency Moody’s had said that India’s public sector banks would require up to Rs 2 lakh crore over the next two years to bounce back.

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History of this topic

India: Gross NPAs of PSBs at ₹3.16L Cr, Govt Reports
2 weeks ago

India: Gross NPAs of PSBs at ₹3.16L Cr, Govt Reports

Deccan Chronicle  

New Delhi: The gross non-performing assets of public sector banks stood at Rs 3.16 lakh crore as of September 30, which is 3.09 per cent of the outstanding loans, while gross NPAs as percentage of outstanding loan is 1.86 per cent in private sector banks, the government said on Tuesday. Informing to the Parliament, minister of state for finance Pankaj …

Banking revival in 2025: Why strong liability franchises stand to gain
2 weeks, 5 days ago

Banking revival in 2025: Why strong liability franchises stand to gain

Live Mint  

Indian bank stocks are waiting for their moment in the sun. Read this | Private lenders see stress in credit cards, personal loans in Q2 Elevated deposit costs and sluggish base growth weighed heavily on net interest margins for both public and private banks. Public vs private banks Credit costs for private banks increased by 10 basis points sequentially, with …

SBI set to borrow $1.25 billion, India’s largest dollar-denominated bank loan in 2024; details here
1 month, 1 week ago

SBI set to borrow $1.25 billion, India’s largest dollar-denominated bank loan in 2024; details here

Live Mint  

The State Bank of India, India's largest public sector bank, is planning to raise up to $1.25 billion, marking the biggest dollar-denominated loan in the country's financial sector. Dollar loan volume declines The report said that despite these loans, India's dollar loan volume has declined 27 per cent to $14.2 billion this year due to the absence of large company …

S&P Foresees Steady 6.5-7 Percent Growth for India Until 2027
1 month, 1 week ago

S&P Foresees Steady 6.5-7 Percent Growth for India Until 2027

Deccan Chronicle  

New Delhi: S&P Global Ratings on Thursday projected the Indian economy to grow between 6.5-7 per cent annually in the three fiscal years till March 2027 as infrastructure spending and private consumption drive growth momentum. “Good economic growth prospects will continue to support banks' asset quality, while healthy corporate balance sheets, tighter underwriting standards and improved risk management practices will …

RBI retains SBI, HDFC, ICICI as India’s too-big-to-fail banks
1 month, 1 week ago

RBI retains SBI, HDFC, ICICI as India’s too-big-to-fail banks

Live Mint  

India’s central bank, the Reserve Bank of India, announced on Wednesday that the State Bank of India, HDFC Bank, and ICICI Bank remain designated as domestic systemically important banks. According to the RBI, SBI and HDFC Bank will face heightened capital buffer requirements beginning April 1, 2025. PSBs vs Private banks Separately, a recent report by SBI highlighted robust financial …

PSB’s Record 26% Profit Growth in First Half FY25
1 month, 1 week ago

PSB’s Record 26% Profit Growth in First Half FY25

Deccan Chronicle  

New Delhi: The finance ministry on Tuesday said that public sector banks have shown robust performance in the first half of the current fiscal year with a 26 per cent growth in net profit, increase in business and decline in non-performing assets. During the first six months of FY25, the finance ministry also said that the credit and deposit portfolio …

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

PSU banks are giving the best FD rates in eight years. Here's why
1 month, 2 weeks ago

PSU banks are giving the best FD rates in eight years. Here's why

Live Mint  

Mumbai: Under pressure from slow pace of deposit growth compared to loan offtake, India’s state-owned banks have pressed the pedal on attracting depositors even at the cost of a potential hit on their margins and profits. This September, the weighted average domestic term deposit rate for public sector banks touched 7%, a first since March 2017. According to Aniket Dani, …

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

FM Asks PSBs to Focus on Core Business, Deposits
4 months ago

FM Asks PSBs to Focus on Core Business, Deposits

Deccan Chronicle  

New Delhi: Union finance minister Nirmala Sitharaman on Monday asked all the heads of public sector banks to focus on core banking business and speed up the pace of deposit growth by introducing innovative products. “The finance minister reviewed the financial performance of banks and progress made in the implementation of various flagship schemes of the government, including PM Awas …

Economic Survey 2023-24: Displaying stellar show banking, financial sectors must brace for likely vulnerabilities
5 months ago

Economic Survey 2023-24: Displaying stellar show banking, financial sectors must brace for likely vulnerabilities

The Hindu  

With India’s banking and financial sectors displaying a stellar performance in FY24 and as India’s financial sector undergoes critical transformation, it must brace for likely vulnerabilities originating globally or locally, the Economic Survey 2023-24 has cautioned. Economic Survey 2023-24 LIVE updates In FY24 bank credit witnessed double digit and broad-based growth and asset quality improved dramatically with gross and net …

India's Corporates Face High Capital Needs: Moody's
6 months, 3 weeks ago

India's Corporates Face High Capital Needs: Moody's

Deccan Chronicle  

New Delhi: Global ratings agency Moody’s Ratings on Thursday said capital requirements will remain high for Indian corporates as they go in for capacity expansion and inorganic growth spending. The ratings agency further said that capacity expansion, inorganic growth spending, refinancing and working capital needs, along with shareholder payments, would keep capital requirements high for non-financial corporates in India. “Capital …

Banks should improve corporate loans, keep deposit base healthy
7 months ago

Banks should improve corporate loans, keep deposit base healthy

New Indian Express  

For the first time ever, the cumulative net profits of Indian banks surpassed Rs 3 lakh crore in 2023-24, up from Rs 2.3 lakh crore in 2022-23. While the 26 private lenders’ net profits shot up 42 percent to Rs 1.78 lakh crore, the 12 public sector banks reported net profits of Rs 1.41 lakh crore in 2023-24, a 34 …

Net Zero By 2070: Why India Must Focus On Transition Finance, Decoupling Emissions From Growth
10 months, 1 week ago

Net Zero By 2070: Why India Must Focus On Transition Finance, Decoupling Emissions From Growth

ABP News  

Backed by a vibrant private sector, innovative technologies, and an enabling policy environment, India has made great strides in its transition towards a low-carbon economy. All this would require innovative financing and capital towards scaling up energy efficiency, renewable energy capacity, upgradations of grid network, assistance for enhanced energy access to last mile end user communities, and a just transition …

Canara Bank was top lender to public sector cos in FY23
1 year, 4 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, 5 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 …

Nirmala Sitharaman praises PSBs, says 'profit tripled to Rs 1.04 lakh in nine years'
1 year, 5 months ago

Nirmala Sitharaman praises PSBs, says 'profit tripled to Rs 1.04 lakh in nine years'

India TV News  

Finance Minister Nirmala Sitharaman stated on Saturday that the profit of public sector banks has tripled to Rs 1.04 lakh crore over the past nine years as a result of government initiatives. Public sector banks net profit nearly tripled from Rs 36,270 crore in FY2014 to Rs 1.04 lakh crore in FY23. They should follow best corporate governance practices, adhere …

ECONOMIC PERSPECTIVES | Neoliberal dilemma: Public sector banks turn a profit but privatisation not on cards for now
1 year, 6 months ago

ECONOMIC PERSPECTIVES | Neoliberal dilemma: Public sector banks turn a profit but privatisation not on cards for now

The Hindu  

Published : Jun 02, 2023 15:59 IST - 6 MINS READ The government’s economic spokespersons have been celebrating an ostensibly remarkable recovery in the country’s public banking sector. To ensure the solvency of and capital adequacy in banks, the government had to infuse Rs.3,10,997 crore into the public banking system from 2016-17 to 2020-21. Ever since the release of the …

Inside Bank of Baroda’s silent transformation
1 year, 8 months ago

Inside Bank of Baroda’s silent transformation

Live Mint  

In the last week of September 2021, Mukund Rajan, the former chief ethics officer at the Tata Group, showed a bunch of Bank of Baroda executives a video clip from the 26/11 terror attacks in Mumbai. Led by Sanjiv Chadha, the bank’s current managing director and chief executive officer, the lender is on a mission to reinvent itself by adding …

Banks net interest income rises 25.5% in Q3; Bank of Maharashtra outruns PSBs
1 year, 10 months ago

Banks net interest income rises 25.5% in Q3; Bank of Maharashtra outruns PSBs

Live Mint  

Pune-based Bank of Maharashtra surpassed other public sector lenders in terms of loan growth percentage for the third quarter of FY23. As per an analysis of the latest financial results of public sector banks showed, which PTI cited, BoM bank has maintained the top slot in credit growth in percentage terms consistently for the past 10 quarters despite COVID-19 pressures. …

ECONOMIC PERSPECTIVES | Is a reversal of bank nationalisation on the cards?
1 year, 10 months 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 …

IDBI Bank sell-off can set the stage for selling public-sector banks
1 year, 11 months ago

IDBI Bank sell-off can set the stage for selling public-sector banks

Live Mint  

Tuhin Kanta Pandey, secretary of the department of investment and public asset management, while speaking to Business Standard, recently said that the Indian government intended to exit IDBI Bank completely, as it was not in the business of commercial banking. The stock market doesn’t give a valuation to government-owned or public sector banks that’s close to what it gives large …

Banking data bodes well for the economy
1 year, 11 months ago

Banking data bodes well for the economy

Hindustan Times  

The Reserve Bank of India ’s Report on Trend and Progress of Banking in India 2021-22, released on December 27, underlines the trend of continuous improvement in the health of India’s banking sector. The credit goes to RBI’s nimble-footed approach during the pandemic’s disruption and its sustained efforts to clean bank balance sheets in India. To be sure, the story …

Indian Banks GNPAs Down To 5% In September 2022, Macroeconomic Conditions Can Impact Banks Health RBI Report
1 year, 11 months ago

Indian Banks GNPAs Down To 5% In September 2022, Macroeconomic Conditions Can Impact Banks Health RBI Report

ABP News  

Gross Non-Performing Assets of Indian banks declined to 5 per cent in september but the present macroeconomic environment can impact lenders' health, said a new Reserve Bank of India report. The report said, “from its peak in 2017-18, the GNPA ratio of SCBs has been declining sequentially to reach 5 per cent at end-September 2022.” It said that the number …

Banks write off loans worth Rs 11.17 lakh crore in last 6 years
2 years 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," …

RBI Governor To Meet CEOs Of PSBs Tomorrow To Discuss Slow Deposit Growth
2 years, 1 month ago

RBI Governor To Meet CEOs Of PSBs Tomorrow To Discuss Slow Deposit Growth

ABP News  

Reserve Bank of India Governor Shaktikanta Das will hold a meeting with CEOs of public sector banks on Wednesday to discuss issues concerning slow deposit growth and sustainability of high credit demand. Non-food credit growth almost doubled from 8.7 per cent in March 2022 to 16.4 per cent in September 2022, reflecting not only an acceleration in the growth of …

RBI Issues Clarification On PSB Privatisation Report, Says Bulletin Article Doesn't Represent Its View
2 years, 4 months ago

RBI Issues Clarification On PSB Privatisation Report, Says Bulletin Article Doesn't Represent Its View

ABP News  

The Reserve Bank of India on Friday clarified issued a clarification saying that the views expressed in its recent article, ‘Privatisation of Public Sector Banks: An Alternate Perspective’, do not represent the views of the central bank and are of the authors. The article appeared in the monthly bulletin arguing against a big bang approach to public sector banks privatisation. …

RBI Bulletin: Big bang Approach To PSB Privatisation May Do More Harm Than Good
2 years, 4 months ago

RBI Bulletin: Big bang Approach To PSB Privatisation May Do More Harm Than Good

ABP News  

A big bang approach to privatisation of state-run banks may do more harm than good, according to the latest Reserve Bank of India bulletin released on Thursday. The RBI’s paper showed some of the major reasons that public sector banks can serve the country better than private banks include better financial inclusion, better credit system, and better efficiency of the …

ADB pegs 2022-23 GDP growth at 7.5%
2 years, 8 months ago

ADB pegs 2022-23 GDP growth at 7.5%

The Hindu  

The Asian Development Bank forecasts India’s GDP growth to moderate to 7.5% in 2022-23 from an estimated 8.9% in 2021-22, but will pick up to reach 8% in 2023-2024. Food prices In its Asian Development Outlook report released on Wednesday the bank stated that food prices were expected to rise in tandem with increasing commodity prices Higher public capital spending …

Budget 2022: Proposals on increased infra capex, MSMEs, to largely benefit banking sector
2 years, 10 months 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 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 …

PSU banks mobilise record fund of ₹58,700 crore from markets in FY21
3 years, 4 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, 6 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. …

‘PSU banks’ bad-loan additions may moderate’
3 years, 9 months ago

‘PSU banks’ bad-loan additions may moderate’

The Hindu  

Indian state-owned lenders are expected to see additions to bad loans moderate, but structural issues at the banks could cap returns on their stocks, Morgan Stanley said on Thursday. “Over the past few years, state-owned enterprise banks have seen significant capital infusion by the government, lower risk-weighted assets’ density, higher provisioning and some large recoveries,” the brokerage said in a …

Union Budget 2021: Sitharaman defends privatisation of PSBs in interview with News18, says India needs more efficient banks
3 years, 10 months 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
3 years, 10 months 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 …

Market Wrap, Feb 1: Here's all that happened in the markets today
3 years, 10 months ago

Market Wrap, Feb 1: Here's all that happened in the markets today

Business Standard  

No tinkering with the direct taxes, capital gains taxes or security transaction tax, and no announcement of Covid tax on super-rich left bulls untamed at the bourses who managed to entirely reverse previous week's losses and clock the sharpest-ever Budget rally, in absolute terms, on Monday. Budget proposals nudged sectors like financials, insurance, and infrastructure with shares of financials including …

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address
3 years, 10 months ago

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

News 18  

With the Union Budget due to be presented on Monday, 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 …

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address
3 years, 10 months 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 Financial Stability Report: Banks gross NPA may rise to 13.5% by September 2021
3 years, 11 months ago

RBI Financial Stability Report: Banks gross NPA may rise to 13.5% by September 2021

The Hindu  

Banks' gross non-performing assets may rise to 13.5% by September 2021, from 7.5% in September 2020 under the baseline scenario, according to Financial Stability Report released by the Reserve Bank of India. "The stress tests indicate that the GNPA ratio of all scheduled commercial banks may increase from 7.5% in September 2020 to 13.5% by September 2021 under the baseline …

RBI Raises Concerns Over Zero-coupon Bond for PSB Recapitalisation, Talks on With Govt for Solution
3 years, 11 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 …

Data | Why did bad loans in banks reduce despite COVID-19 and economic downturn?
3 years, 11 months ago

Data | Why did bad loans in banks reduce despite COVID-19 and economic downturn?

The Hindu  

The ratio of Gross Non-Performing Assets in Indian banks decreased in FY20 and FY21 despite the impact of COVID-19 and the economic downturn that preceded it. This was mostly due to three factors: 1) Banks wroteoff relatively more NPAs in FY20 to clean their balance sheets; 2) Some large NPA accounts got resolved through debt-recovery channels; and 3) It is …

India considers creating bank with $13.7 billion equity capital to fund roads
3 years, 11 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 …

Policy roll-back may dent banks’ health, says RBI
3 years, 11 months ago

Policy roll-back may dent banks’ health, says RBI

The Hindu  

In 2020-21, as policy support is rolled back, the impact of the COVID-19 pandemic may dent the health of the banks and non-banks, the Reserve Bank of India said in its Report on Trend and Progress of Banking in India 2019-20. This is a statutory publication in compliance with Section 36 of the Banking Regulation Act, 1949 and this Report …

Banks in India to See Capital Decline Over 2 Years Without Fresh Infusion: Moody's
4 years ago

Banks in India to See Capital Decline Over 2 Years Without Fresh Infusion: Moody's

News 18  

New Delhi: Moody's Investors Service on Monday said the bank capital will moderately fall in emerging Asia over the next two years, with India seeing larger capital decline without further infusion. In a report, Moody's said the uncertain trajectory of asset quality is one of the biggest threats for emerging market banks, as operating conditions remain challenging amid the current …

Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P
4 years, 1 month ago

Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P

The Hindu  

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11% of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is “masking” problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the proportion of …

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P
4 years, 1 month ago

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P

News 18  

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is ”masking” problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the …

Finance Ministry May Provide Capital Support Worth Rs 20,000 crore to Public Sector Banks in 3rd Quarter
4 years, 2 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, 3 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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