The AIBEA has welcomed the government's
decision to infuse addional capital in PSBs but
termed it as a short term relief but not as a long
term cure"No doubt, this is a welcome measure.
But this by itself will not help the banks to come
out of the mess they are in now" AIBEA, General
Secretary, C H Venkatachalam said in a press
release. "We demand recovery and not write off
of bad loans. We need cure and not just relief",he said.
The Rs 2.11 lakh crore recapitalisaon package
for PSBs announced is an investment by the
government and not an expenditure, Finance
Secretary Ashok Lavasa told. Of the total, Rs 1.35
lakh crore will be given by issuing recapitalisaon
bonds, while the rest will come in the form of
budgetary support and capital raising by the
banks themselves. The nature of the
recapitalisaon bonds is sll being deliberated
over and will be made clear once finalised.
Speaking about the recapitalisaon exercise,
Lavasa said that the government is open to
considering models that have been tried before
and doesn’t want to dismiss any suggesons
right away. The recapitalisaon program is a work in
progress, he said, and a final plan will be
formulated in due course.
SBI chairman Rajnish Kumar says that the
recapitalisaon bonds would lead to banks get a
bit more daring in taking hair‐cuts to resolve bad
loans. Kumar also said that this would also
accelerate the acon at the Naonal Company
Law Board where most of bankruptcy cases are
not moving ahead due to lack of banks' ability to take haircuts.
Canara Bank reported a 27% fall in
second‐quarter profit on lower interest income.
Net profit fell to Rs 260 crore in the quarter
ended Sept 30 from Rs 357 crore a year earlier,
the country's eighth‐biggest PSB by assets said on
today. Gross bad loans as a percentage of total
loans stood at 10.51% at end‐Sep, compared with
10.56% a quarter earlier and 9.81% a year ago.
Interest earned in the quarter fell 3% to Rs 10,058 crore.
ICICI Bank today reported a 33.66% drop in
standalone profit aer tax (PAT) at Rs 2,058 crore.
The Bank had reported a net profit of Rs 3,102
crore in the same quarter last year.
HDFC Bank has been given green signal for seng
up of a call centre cum residenal training centre
in Mohali district, Punjab at a cost of Rs 194
crore, a government official said today.
"The Union Environment Ministry has given the
environment clearance to HDFC Bank's proposal
to set up a call centre and residenal
training centre in Mohali," the official said.
After India’s large private banks such as Axis Bank
and Yes Bank reported large divergences in gross
NPAs to the tune of Rs 5,633 crore and Rs 6,35crore respecvely,
Chanda Kochhar of ICICI Bank
said that the bank did not report any divergence
on that front, as the RBI audit is not yet fully
complete. Notably, the asset quality for the
quarter ended 30th September 2017.
Banks need to handhold the MSME)L sector and
help it grow as the ene form the backbone of
the economic acvity and generate a number of
jobs, said Financial Services Secretary RajivKumar.