Banking this week: Govt announces Rs 88,000 crore gift for 18 PSBs; all eyes Budget 2018
Banking sector this week got its booster shot right before the Union Budget with the announcement of Rs 88,000 crore capital infusion by the government through recapitalisation bonds.
Starting on a different note, jobs, especially in the banking sector, may get realistic even if you score a zero at data analysis and interpretation.
As many as 62 of its probationary officers who got offered a job in country’s biggest lender State Bank of India secured zero marks in the data analysis and interpretation segment in the main entrance exam.
Market Week Ahead: Union Budget, Economic Survey & earnings among 10 factors to keep investors busy
Coming back to the main news of the week, the government will infuse Rs 88,139 crore into 20 public sector banks through recapitalisation bonds and budgetary support in this financial year, a move aimed at strengthening these banks’ lending capacity and thereby pulling the country out of a three-year low growth slump.
Most public sector bank stocks surged on the news and booked profits the next day with the stocks falling up to 7 percent.
Rating agency Crisil also revised upwards the outlook on 18 state-run banks to ‘stable’ from ‘negative’ and also reaffirmed their ratings following the capital injection.
Ahead of the Union Budget, the Indian Banks’ Association has made a demand for full tax deduction on NPA (non-performing asset) provisions and more funds for digital infrastructure.
In the age of Bitcoins and virtual currency, a former Reserve Bank of India executive has said that banks must use the technology behind Bitcoins and that we cannot ignore digital currency in this age.
Additionally, technology must also be used to further push financial inclusion with ePayments using available data innovators including Aadhaar and Fintech players and integration of physical as well as digital experience to reach the last mile consumer.
The race to buy the insolvency assets of Bhushan Steel gets aggressive as Tata Sons led Tata Steel, Sajjan Jindal-owned JSW Steel, Anil Agarwal’s Vedanta and LN Mittal’s ArcelorMittal queue up to bid for the assets.
Uday Kotak-led Kotak Mahindra Bank has been waiting for more cues on pricing and resolution of bad loans under the Insolvency and Bankruptcy Code in order to aggressively invest in the distressed assets.
On getting more FDI or foreign direct investment into India, banking being a core part of the Indian economy, Kotak Bank’s joint Managing director Dipak Gupta said that a Bank’s profitability must benefit Indian savers rather than be moved out of the country into the pockets of foreigners.moneycontrol