Page 14 - Psbs

PSBs write off Rs 59,547-cr loan in FY16

Of the total, State Bank of India alone has written off Rs 15,763 crore worth loans

Letters: Autonomy for PSBs

The government has conveyed its intention to infuse Rs 22,915 crore into 13 state-run lenders. This is good news for capital-starved banks. To what extent it will help them ensure regulatory compliance or, for that matter, expand their credit is anybody's guess.It is estimated that public sector banks (PSB) in India will require additional capital support of at least Rs 3 lakh crore spread over three years until 2019. As the largest stakeholder in PSBs, to what extent the government will be able to meet these additional requirements amid a not-so-favourable fiscal situation is a big question. What, on the other hand, would be the response of the banks in the face of global uncertainties and market volatility?A permanent solution lies in taking some bold initiatives and reducing the banks' dependence on the government. Ensuring greater functional autonomy and a more professional management of operations are critical for banks to achieve independence.Srinivasan Umashankar NagpurLetters

Equity MFs see hidden value in state-run banks

After long hiatus, fund managers pumped money in SBI, PNB and Union Bank last month

PSBs may get Rs 12k-cr extra capital in FY17

Govt confident additional allocation won't affect the 2016-17 fiscal target

Govt unhappy with PSBs' recovery record

Wants them to reach 70 per cent benchmark for provisions

Letters: How to cure PSBs

In the article, "Oh, for a crisis!" (May 28), T N Ninan suggests that public sector banks (PSB) have to be brought out of the present crisis. How to do that is the big question. Let us examine some suggestions from banking experts. One of the radical ones is privatisation. This is not possible in India, considering the strong labour resistance to the proposal. The Narendra Modi government can take a bet on the proposal, at the risk of not returning to power.Unions cannot be professional in their approach or attitude. Long-term gains and short-term losses do not influence any of the labour leaders. The best the Modi government can do is to sell the idea to labour leaders silently and muster their support. But that is only a wild guess at the moment.Other reforms comprise infusion of further capital that would spur credit growth. While credit growth may be achieved, there is no guarantee about the quality of such growth.Here is a suggestion worth considering due to its limited negative o

SBI, other PSBs yet to raise funds of Rs 22,257 cr from markets

These public sector banks were granted permission to raise funds in December 2014

PSBs may face further stress on asset quality: Moody's

Banks have started classifying non-viable loans as bad assets as per RBI norms, which has started impacting their balance sheet

CRISIL downgrades ratings of 8 PSBs

Predicts weak loans will grow to Rs 7.1 trillion in a year