Page 10 - Bank Stocks
Don't bank too much on bank stocks
One axiom of modern economics is that a financial crisis takes longer to mitigate than a crisis in any other given sector. Finance is the life-blood of every sector and a crisis in finance affects every other sector. At a global level, we've seen this since the so-called Subprime Crisis in 2008. The global economy has still not fully recovered despite interventions by central banks. India has been in the middle of an unacknowledged bank crisis since 2012-13. It started with the government opening up the liquidity tap to combat the second stage of the global financial crisis. At that stage, lots of wannabe infrastructure developers made unrealistic bids on roads, mines, power projects, etc. Once those loans started going bad, it got worse and worse. Moreover, banks threw good money after bad, by greening NPAs (non-performing assets). During Raghuram Rajan's tenure, the Reserve Bank of India (RBI) started to force banks to strictly recognise NPAs. That revealed the extent of the ...
Govt bank stocks on fire after recapitalisation plan
Nifty PSU banks index jumps a record 30%; m-cap of these stocks zooms to Rs 1.2 lakh cr; Sensex crosses 33k-mark
 "Govt bank stocks on fire after recapitalisation plan")
