The list of NPAs also include accounts of Jet Airways (India) Limited, Reliance Communication, Reliance Telecom, IL&FS Financial Services, and Future Enterprises, release said.
Recapitalisation would partly bridge the NPL provision gap and it would be concentrated more to the efficient and larger banks, Vishal Goyal, Head of Banks Research at UBS Securities India said,
Deutsche Bank expects cost growth to be much slower than historical trends as SBI has been addressing its cost issues.
But it is also evident, as discussed recently that another reason is the legacy non-performing loan (NPL) issue in the state-owned part of the banking sector & the continuing failure to recapitalise those state-owned banks, Wood said.
Moody's believes that "BOI and Canara Bank's baseline credit assessment (BCA) could be upgraded if there are substantial improvements in the bank's asset quality metrics.
The bank's net interest income (NII) remained almost flat at Rs 4,233 crore during October-December quarter compared to Rs 4,221 crore in same quarter last year.
IFCI posted its December quarter earnings Monday with revenues climbing to Rs 790.64 crore from Rs 638.43 crore in the same quarter last year while net profit jumped from Rs 76.31 crore to Rs 142.39 crore.
In an interview with CNBC-TV18, V Srinivasan, ED - Corporate Banking, Axis Bank, spoke about how the bank does not see the need to raise additional capital, why it is too soon to say “worst is over†for non-performing assets and how much restructuring he sees for infrastructure loans.
Third-quarter earnings for UCO Bank from treasury gains as the banking system witnessed large FCNR deposits and as bond yields came down thanks to the Reserve Bank of India‘s recent liquidity-boosting measures, Arun Kaul, Chairman, UCO Bank, told CNBC-TV18.
Sanjeev Prasad of Kotak Institutional Equities expects the new spectrum pricing to be rational and sees further consolidation in the telecom sector. He is also of the view that there is no case for ONGC to pay higher royalty.
SBI has declared the loan to Kingfisher as NPL. N Seshadri, executive director, Bank of India spoke to CNBC-TV18 about his expectations of the airline and what his stand is on the credit given.
Two experts who track the banking space closely are Abhijit Mazumdar, banking analyst of Prabhudas Lilladher and Hemindra Hazari of Karvy Stock Broking who debated on CNBC-TV18 if the Q3 numbers have made a difference.