Privatisation and debt are on the radar of bankers

Banks were challenged in 2022 by the sluggish growth in deposits, which have not kept pace with credit. One reason is that deposits, unlike debt mutual funds, do not offer any tax breaks

Public sector banks (PSBs) are in a fairly strong position today after going through a rather stressful period following the asset quality review five years ago. Profits are looking good, and more importantly, provisioning for bad loans has come down. The Insolvency and Bankruptcy Code is in motion, as is the National Asset Reconstruction Company, and hence the resolution part of the story is also addressed to a large extent, though it is a work in progress.
 

The Budget will be presented against the background of a possible recession in the West which will go hand-in-hand with a regime of