If the govt wants PSBs to shoulder the burden of the economic package execution, simultaneously fighting the COVID-19 uncertainty, it needs to fill their capital void. Else, it needs to prepare a plan to get out of government ownership in these banks and let private players run the show.
The best way to make public sector banks strong is to transform their governance which is done best by privatizing them. Politicians have neither the inclination, nor the determination, to let them be run professionally without interfering.
The government has already front loaded Rs 68,855 crore, out of Rs 70,000 crore earmarked for capital infusion for the current fiscal, to take care of the mega-merger plan announced in August last year
The strike call has been given by the United Forum of Bank Unions (UFBU), an umbrella body of nine bank unions, including All India Bank Officers' Confederation (AIBOC), All India Bank Employees Association (AIBEA) and National Organisation of Bank Workers (NOBW) to press for wage revision pending since November 2017.
There are six reasons why the timing may not be right for the government to turn off the funding tap for PSBs.
The top gainers included Allahabad Bank which jumped 8 percent while State Bank of India gained over 2 percent after a Citi upgrade in its stock price.
Geared towards non-farm income-generating activities, lack of due diligence and poor monitoring of these loans is the latest worry for the already stressed banking sector.
What’s needed is a proper incentive structure for PSU banks and bankers.
Moody’s has affirmed a stable outlook for banks including Canara Bank, Oriental Bank of Commerce, Syndicate Bank and Union bank of India. The firm changed the outlook on Punjab National Bank to positive from stable.
251 stocks hit new 52- week low on BSE including Indiabulls Housing Finance, Wockhardt, Jindal Steel & Power, Eris Lifesciences, Godrej Industries and JSW Steel among others.
The top Nifty50 gainers include Indiabulls Housing Finance which is up close to 4 percent followed by HDFC, Adani Ports, Bajaj Finance and Bajaj Finserv while the top losers are Tata Steel, JSW Steel, Vedanta, Hindalco Industries and Hero MotoCorp.
Measures such as removal of surcharge on foreign portfolio investors (FPI) and removal of CSR violation as the criminal offence will cheer market participants.
Banks are parking almost a trillion rupees daily at the RBI’s overnight repo window. That shows they have money but are unwilling to lend.
The speech was like a well-paced innings of MS Dhoni – that started off slowly and cautiously, well-paced in the middle overs and slogging it out towards the end to ensure a victory for team India
Nifty PSU Bank added over a percent led by gains from Bank of Baroda and PNB, which jumped over 2 percent each. Bank of India, Canara Bank, IDBI Bank and Oriental Bank of Commerce were up 1 percent each.
Nifty Bank shed close to 2 percent dragged by YES Bank which plunged 14 percent.
The Nifty likely to consolidate in the range of 10,850-11,200 for the coming week. Auto, Real Estate and NBFC can outperform the index
The top gainers from NSE include Zee Entertainment, YES Bank, Cipla, Hindustan Unilever and IndusInd Bank while the top losers are Indiabulls Housing Finance, Tata Steel, Mahindra & Mahindra, Tata Motors and BPCL.
The top gainers from NSE include YES Bank which spiked 8 percent followed by Bajaj Finance, Bajaj Finserv, Eicher Motors and Indiabulls Housing Finance while the top losers are Vedanta, IOC, Britannia Industries, Bharti Airtel and Tech Mahindra.
870 stocks advanced and 871 declined while 357 remained unchanged on the NSE. On the BSE, 1139 stocks advanced, 1234 declined and 171 remained unchanged.
935 stocks advanced and 755 declined while 395 remained unchanged on the NSE. On the BSE, 1169 stocks advanced, 1159 declined and 160 remained unchanged.
The top gainers from NSE include YES Bank which jumped 5 percent followed by HCL Tech, Bharti Infratel, TCS and Tech Mahindra while the top losers are ONGC, Hero MotoCorp, Bajaj Finance, Indian Oil Corporation and State Bank of India.
PSU banks are likely to see a turnaround in profitability given that most of the pain has been recognized and NPA and credit costs are peaking out
While the government will continue to provide recapitalisation fund of Rs 20,000-30,000 crore each year through the Budget, for which it will use RBI’s surplus reserve transfer, Elara Capital analysts said
The top gainers from the NSE include Tech Mahindra, Larsen & Toubro, HCL Tech, GAIL India and Dr Reddy's Labs while the top losers are Bharti Infratel, IndusInd Bank, YES Bank, UPL and Vedanta.