In order to ensure liquidity for small businesses, Sitharaman said banks have been asked to provide bill discounting facility to the MSME sector against payments due from the large corporates
As the rates go down, depositors tend to lock in at longer maturities in anticipation of more cuts.
Interest rates, both lending as well as deposits, are on their way down. However, a different trend is being seen in the case of PSBs.
The Indian banking system is dominated by public sector banks and these reforms will have an impact on the entire industry.
Merging weaker banks with stronger ones will erect a protective ring for depositors and shareholders.
The consolidated bank will have the second largest branch network in India hereafter, with 11,437 branches.
Chief executives of ten PSBs have been called for a meeting on August 30 by the finance ministry's department of financial services.
This difference in total daily remuneration has widened by about Rs 70,000 since FY17, when it was Rs 1.7 lakh. For instance, India’s largest bank, the State Bank of India (SBI) paid its chairman Rajnish Kumar Rs 8,092 per day in FY19, as compared to Rs 3.74 lakh that HDFC Bank Ltd, India’s largest private bank, paid its CEO Aditya Puri in FY19.
While Yes Bank fund raising may have helped in restoring confidence in the banking sector to some extent, the story may vary for other lenders, especially state-run banks.
This despite improvement in asset quality, with a decline in the number of non-performing assets
The governor gave "impetus to resolution of stresses assets facilitated by revised framework for resolution," the RBI said in a statement.
Banking nationalisation continues to cast a long shadow over Indian political economy even 50 years after the fateful day it was signed into a law. Given the political realities of India, it will continue to be relevant even 50 years from now.
The Finance Minister said she hoped normalcy in the NBFC space would be restored in six to seven months’ time and that the RBI should see NBFCs quickly address the problems
The latest fund injection is part of the government’s road map to adequately bolster the state-owned banks’ capital base.
The banking regulator found irregularities in current accounts opened by these banks after receiving a complaint.
The Finance Ministry has asked for 'internationally reputed Sebi or RBI registered merchant or investment bankers, consulting firms, financial institutions and asset management companies' to send in their proposals by 3:30 pm on July 26, 2019
Though there is a strong case for an aggressive 50 basis points cut in policy rates, the RBI is likely to take a more measured decision to cut rates by 25 basis points.
PNB is part of a consortium of 26 lenders, led by the State Bank of India, which have exposure to Jet Airways' debt of over Rs 8,000 crore
In the last four years, with large capital infusion from the government, the state-run banks have been able to recognise and provide for their stressed assets with a steady decline in their gross NPAs (GNPAs) and net NPAs (NNPAs).
It is a reflection of the sad state of affairs in Indian public sector banking that the government/external agencies have to hand hold lenders to ensure that basic hygiene is followed when extending loans.
Providing budgetary support to public sector banks was part of the government’s broader strategy of infusing Rs 2.11 lakh crore in the banking sector via various means.
"Mid and small caps are likely to underperform until their valuations become attractive, says Vivek Ranjan Misra of Karvy Stock Broking.
In 2017, Centre had announced a massive recapitalisation programme, which entailed infusing Rs 2.11 trillion in the banking sector through budgetary support, recapitalisation bonds and raising money from the market
Earlier this week, the Cabinet approved merger of Vijaya Bank and Dena Bank with Bank of Baroda. Jaitley said that there would be no job losses due to merger of the banks and that the move would create a bigger entity like the State Bank of India (SBI).
Public sector banks (PSBs) have filed more than 2,500 FIRs against wilful defaulters till September-end and have started the recovery process, Finance Minister Arun Jaitley informed Parliament on Friday.