Page 13 - Psbs
Valuation gap between public sector and private banks narrows
Price-to-book value ratio of state-owned banks jumped from 0.9x to 1.15x in a day, while private banks traded lower at 3.42x
 "Valuation gap between public sector and private banks narrows")
PSBs need more than budgeted capital infusion: Mundra
RBI identified stressed accounts each having more than Rs 5,000 crore of outstanding loans
 "PSBs need more than budgeted capital infusion: Mundra")
PSBs need four times more capital than govt allocation: Moody's
Lower market valuations was biggest hindrance if PSBs chose to raise fresh equity from markets
 "PSBs need four times more capital than govt allocation: Moody's")
Optimism towards PSBs may not last
The private sector banks have high valuations and can raise cash to meet Basel-III norms
 "Optimism towards PSBs may not last")
After merger of 5 associates with SBI, Govt keen to consolidate more PSBs
Merger proposals in banking sector would require clearance from the Competition Commission of India
 "After merger of 5 associates with SBI, Govt keen to consolidate more PSBs")
FinMin in talks with PSBs to assess next 3-year growth, funding plans
In second tranche of capital infusion, government infused Rs 8,586 crore in 10 banks in March
Govt will nudge 6 PSBs to raise funds in line with Indradhanush plan
This will ease the pressure on the exchequer of pumping in capital
Want to short public sector banks? Look beyond Nifty Bank
Nifty Bank is not a good representative of the sector in many ways
Not just SBI: PNB, BoB, BoI also charge for defaulting on minimum balance
PNB, BoB, BoI, Canara Bank already charge customers for failing to maintain a minimum balance
Solvency position of PSBs worsens
If banks were to provide for all these bad loans, it would wipe off 63% of their net worth
 "Solvency position of PSBs worsens")
Recovery bogey haunts 5 PSBs with high NPAs
Slippages have moderated in Q3 but delays in resolution of bad loans are making life difficult
 "Recovery bogey haunts 5 PSBs with high NPAs")
PSBs' stress level down with better recoveries
This does, said bankers, give them confidence on follow-up action
 "PSBs' stress level down with better recoveries")
New AT1 rules double PSBs' debt servicing ability to Rs 2.3 lakh crore
Global rating agency Fitch welcomed the move, saying this will also help them raise domestic capital
 "New AT1 rules double PSBs' debt servicing ability to Rs 2.3 lakh crore")
PSBs need equity worth about Rs 2 lakh crore by March 2019
REITs and InvITs are vehicles created to primarily invest in revenue-generating real estate assets
PSBs need equity worth Rs 1.7 lakh cr by March 2019: Study
Report highlighted that credit enhancement would be important in making corporate bonds attractive
Government to soon finalise 2nd tranche of capital infusion in PSBs
The government has already announced fund infusion of Rs 22,915 crore
 "Government to soon finalise 2nd tranche of capital infusion in PSBs")
4 PSBs may default on AT-1 bonds' coupon
Continued losses erase revenue reserves
 "4 PSBs may default on AT-1 bonds' coupon")
Listed PSBs in red for a third quarter
Pace of additions to NPAs slower but provisioning pressure will continue for a while
 "Listed PSBs in red for a third quarter")
Top 100 borrowers owe PSBs Rs 13.71 lakh crore
The wilful defaulters as a percentage of GNPAs as on March 2016 was 16.09%
 "Top 100 borrowers owe PSBs Rs 13.71 lakh crore")
PSU bank strike on Friday might affect services
Unions, which are protesting against FDI in the banking sector, are pressing for various demands
 "PSU bank strike on Friday might affect services")
