In a special pre-Budget series, Ideas for India, Latha Venkatesh discusses what the Budget can do to improve the banking sector and thereby improve lending in the economy. Pratip Chaudhuri, Former Chairman of SBI, MR Umarji, Former Legal Advisor to the IBA & one of the authors of the Bankruptcy Code Panel and Rajat Bahl, Director, CRISIL Ratings.
The government‘s stance to provide capital only to public-sector banks (PSBs) meeting its performance thresholds – even as they reel under asset quality and profitability pressures – will force many to grow at a significantly slower pace, says CRISIL.
The Reserve Bank of India‘s (RBI‘s) recent revision of the Basel-III liquidity guidelines will help banks meet the liquidity coverage ratio (LCR) threshold of 60 per cent by January 2015, says CRISIL.