Government’s decision to recapitalize banks is a prudent move which would reduce considerable stress from the banking sector. Public Sector Banks (PSBs) have been reeling under the load of growing NPAs which has caused significant erosion in their equity base and aversion to lending. While it would help the weaker banks to enhance their capital adequacy … Continue reading Bank Recapitalization – Precursor to consolidation..?!
State Bank of India (SBI) declared its results today and much to the relief it did not slip into red like most of its Public Sector peers. Net profit did fall by 66% for the quarter yet it was able to save a little for its shareholders and to be carried to the balance sheet. Operationally, … Continue reading SBI – The Lone Ranger..!
As mentioned in another post, the NPA discussion has alerted the regulator further more to expedite regulations being under discussion for long. One that RBI has proposed last week, deals with large borrowers’ exposure to the banking sector as a whole. The rules so far only dealt with a bank’s exposure to the corporate and … Continue reading Regulating Large borrowers – RBI Proposal..