Valuation of PSU banks have increased over the last few months without any change in fundamentals.
Investors must keep a hawk-eye on these companies that are likely to witness resolution or restructuring in the near future.
Urjit Patel said GST will reduce inefficiencies within states and broaden the tax base, making it an important part of the digital revolution.
The growth in FEEs in rupee terms in May 2017 over May 2016 was 20.9 percent compared to growth of 7.9 percent in May 2016 over May 2015.
According to Bank of America Merrill Lynch (BofAML), good rains support the case for a 25 bps RBI rate cut on August 2 and June CPI is expected to slip below 2 per cent with food prices still falling.
Mundra, addressing reporters in the sidelines of a banking event in New Delhi, also said there was no specific timeline set by the central bank to identify additional loan defaulters on which bankers would need to start bankruptcy proceedings.
In the second bi-monthly monetary policy review announced on June 7, RBI had reduced the LTV (loan to value) ratios, risk weights and standard asset provisioning rate for individual housing loans on certain category for new customers.
While this is seen as a temporary relief for the farm crisis, experts believe farmers will be better off with lower input costs and an ensured safety net on their output produce.
It expects prices to remain benign in coming months. The industry also urged the government to create a conducive environment for investment, capacity utilisation and augmentation of industrial production on a priority basis.
BoAML believes larger lenders such as SBI are relatively better placed to benefit from this theme.
Nomura believes a majority of resolution will be around right-sizing of debt (around 50 percent haircut) and forcing sale of non-core assets.
If all the 12 accounts are resolved with 60 percent haircuts, CLSA sees 8 percent upside to FY19 adjusted net worth.
The move comes about a month after the government gave the RBI greater power to deal with bad loans, including directing banks to initiate an insolvency resolution process in the case of a default under the bankruptcy code.
Quality and speed of NPA resolution will be key, as many tools (including NCLT proceedings) have seen limited success, CLSA said.
The bank’s non-performing assets (NPAs) now stand at Rs 45,500 crore
Axis Bank, country’s third largest private bank, on Monday said it will raise Rs 5,000 crore by issuing non-convertible debt securities.
This was the second consecutive month in the current fiscal year when RBI net bought dollars from the spot market.
State Bank of India (SBI), country’s largest lender cut interest rate on home loans above Rs 75 lakh by 10 basis points (bps) to 8.60 percent.
The consumer price index likely rose 2.60 percent in May from a year earlier, dipping from 2.99 percent in April, due to a fall in the cost of pulses, cereals and perishable goods, according to the poll of 25 economists.
While borrowers are unlikely to secure cheaper loans, interest rates will continue to stay low as banks will now have additional capital after the RBI yesterday eased deposit norms with the regulator.
According to the Japanese financial services major, headline CPI inflation is expected to remain low in the near term on low food prices. Moreover, core inflation is also expected to stay low on still lingering disinflationary effects of demonetisation and the negative output gap.
With RBI revising down its average inflation forecast by around 140 bps and March 2018 forecast by more than 50 bps, it is imperative that the RBI would need to act.
Industry chamber Assocham said the Reserve Bank (RBI) has "disappointed India Inc" by not reducing the policy interest rates, specially when inflation remains quite benign.
In a terse one-line statement, the Reserve Bank of India (RBI) Governor Urjit Patel today sent out a message that can be seen as underscoring the importance of the central bank’s autonomy.
The RBI today held key interest rates. Here is bankers' response.