More than just capital: Banks' housekeeping woes set to increase

The solution offered by the central bank is to kick start the capex cycle.

Tucked away in the Reserve Bank of India’s (RBI) Report on the Trend and Progress of Banking (T&P: 2018-19) is the suggestion that it is perhaps time to seriously look at the privatisation of state-run banks. “Going forward, the financial health of these 

banks should increasingly be assessed by their ability to access capital markets rather than looking at the government as a recapitaliser of the first and last resort”. Not explicit on privatisation perhaps, but you can get the drift.

The greater portion of the Rs 70,000 crore given to these banks in FY20 by way of recapitalisation went towards provisioning