Mega bank consolidation: Meeting 1 April deadline appears challenging with approvals, clearances still pending
According to a senior banker, information technology integration of Vijaya Bank and Dena Bank with Bank of Baroda is still in process even after 10 months of merger.
Govt plans to infuse Rs 28,615 cr into 7 public sector banks soon; Bank of India likely to get highest amount
The government had earlier announced an infusion of Rs 65,000 crore in PSBs in 2018-19, of which Rs 23,000 crore has already been disbursed, while Rs 42,000 crore is remaining.
Fitch Ratings believes the country's banks will need $40-55 billion in additional capital to meet the Basel-III requirements by 2019
If implemented effectively, this framework has the potential to address the significant concentration risks being posed by stressed corporates
Unless the government moves without delay to cut stakes in the government banks and make capital available, the finance minister may find it even tougher to handle this problem in the years to come
The central bank also said it would consider setting a minimum percentage of capital requirements that companies must raise from corporate bond and commercial paper markets
This is a wake up call for other state-run banks too to begin tapping the fresh investor appetite before the market gets crowded by a series of similar issues
Asset quality and earnings continue to remain stressed for most state banks notwithstanding some signs of early recover
It is time the Modi-government give a serious thought about privatizing public banks, especially given the equity markets are on a bullish course
The new guidelines come at a time when banks are under pressure to set aside funds for a potential increase in bad loans
But in a move to head off opposition from industry, global regulators also said lenders can tap into safety buffers in times of stress.