Page 10 - Psu Banks

PSU banks rally on recap plans; add Rs 1.1 lakh cr to m-cap, PNB gains most

Credit Suisse raised state-run lenders to 'a strong overweight position' from 'underweight'

Nifty PSU Bank index hits fresh 9-month low

Shares of public sector banks (PSBs) came under pressure with the Nifty PSU Bank index hitting fresh nine-month low on the National Stock Exchange (NSE). The index hit an intra-day low of 2,958 - its lowest level since January 6, 2017 - and has slipped 20% from its recent closing high of 3,723 on July 31, 2017.By comparison, the benchmark Nifty 50 was up 1.4%, while Nifty Bank (down 3%) and Nifty Private Bank index (down 1%) were down less than 4% during the period.Among individual stocks, State Bank of India (SBI), Oriental Bank of Commerce and Corporation Bank have lost 20% to 23% in past two-and-a-half months. Union Bank of India, Vijaya Bank, Punjab National Bank, Punjab & Sind Bank, Bank of India, Bank of Baroda and Canara Bank down 16% to 19% during the period.The fall on Wednesday was triggered by Axis Bank that lost nearly 9% to Rs 468 levels following its September quarter numbers that showed worsening asset quality. The bank's gross non-performing assets (NPAs) and net ..

Nifty PSU Bank index hits 9-month low

Shares of public sector banks (PSBs) are trading lower for the second straight day, with the Nifty PSU Bank index hitting nine-month low on the National Stock Exchange (NSE). The index hit an intra-day low of 3,002, its lowest level since January 11, 2017, and has slipped 18.5% from its recent closing high of 3,723 on July 31, 2017. By comparison, the benchmark Nifty 50 was down marginally by 0.58%, while Nifty Bank (down 4%) and Nifty Private Bank index (down 2%) were down less than 5% during the period.Among individual stocks, State Bank of India (SBI), Oriental Bank of Commerce, Vijaya Bank, Corporation Bank, Union Bank of India and Punjab National Bank (PNB) have lost 19% to 22% in past two-and-a-half months. Bank of Baroda, Punjab & Sind Bank, United Bank of India and IDBI Bank are trading close their respective one-year lows on the NSE."The non-performing asset issue with PSU banks is already known. What's surprising is de-growth / subdued growth in the business itself. For .

A change of stance on PSU banks

The transition to IFRS, which Indian banks are required to comply with starting 1 April 2018, is also likely to front-load loan losses for banks

Public sector banks choke on bad loan mess

Double whammy for banks as advances fall and low capital adequacy hampers growth

PSU banks' recapitalisation challenging, say analysts

Acharya's suggestions on the issue are good, how to go about these is the problem, say stakeholders

PSU banks need Rs 1.9 lakh cr additional capital by March 2019: S&P

PSU banks will need at least Rs 1.9 lakh crore additional capital by March 2019 as the lack of it will restrict their ability to write down non-performing loans, S&P Global Ratings said today. "We estimate that Indian banks may need a minimum of about USD 29.6 billion (Rs 1.9 trillion) over the next two years," S&P Global Ratings credit analyst Geeta Chugh said. Public sector banks will need substantial capital to make large haircuts on loans to unviable stressed projects and to meet rising Basel III requirements, S&P said. "The lack of capital restricts the ability of India's public sector banks to write down non-performing loans to more accurate levels. Weak profitability and rising capital demands from Basel III implementation will also continue to pressure the capitalisation of many of these banks," Chugh said. The US-based agency said PSU banks will have to look for alternate sources to increase their capitalisation. "India's public sector banks face three key ...

10 PSU banks submit turnaround plans

Indian Overseas Bank is currently in the process of preparing its turnaround plan

FPIs, mutual funds hike stake in PSU banks in Q1

Foreign portfolio investors (FPIs) and domestic mutual funds (MFs) have increased their stake in public sector banks (PSBs) in the April - June quarter (Q1FY18), on the expectation that there will be a resolution to the non-performing assets (NPAs) issue.Data sourced from Capitaline Plus shows that FPIs and MFs have increased their holdings in State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), Canara Bank and Andhra Bank.Of the 20 PSU banks that have thus far filed their June quarter shareholding pattern, FIIs have raised their holdings in 15 banks, and trimmed their stake in five - Allahabad Bank, Bank of India (BoI), Dena Bank, IDBI Bank and Oriental Bank of Commerce (OBC) by less than one percentage point. On the other hand, in the 15 banks where MFs held stake, they have hiked stake in 10 and cut stake in five banks.In State Bank of India (SBI), FPIs and MFs stake increased by two percentage points and one percentage point respectively, after the bank ...

Tap equity market: Govt tells 5 PSU banks

Each of these PSBs looking to raise Rs 1,000-6,000 crore

Loan waivers, NPA issues: Stay away from PSU banks for now, say analysts

Analysts advise investors to stay away from the sector despite attractive valuations in some cases

Mutual funds go shopping; hike stake in PSBs in March quarter

Domestic mutual funds (MFs) have raised their stake in public sector banks (PSBs) in January - March 2017 quarter. In the first three months of calendar year 2017 (CY17), they have collectively put in Rs 11,469 crore in the Indian equity market, data show.The flow continued in April as well, with the MFs putting in Rs 9,917 crore compared to Rs 4,196 crore in the previous month. In past seven months, between October 2016 and April 2017, mutual funds have pumped in Rs 53,469 crore in equities. By comparison, they had invested Rs 16,527 crore in the previous corresponding period.Of the 16 PSBs where mutual funds hold stake, their holding in 13 banks increased by up to three percentage points in the March quarter. In eight banks, including State Bank of India (SBI), Canara Bank, Oriental Bank of Commerce (OBC), Vijaya Bank, Corporation Bank and Bank of India (BoI), MFs have increased their holdings for the second straight quarter in a row, data show.Analysts attribute the stake hike in ..

New measures positive for PSU bank stocks

On a day when the government announced the long-awaited measures to resolve the huge bad loans menace of Indian banking sector, stocks of most public sector banks declined between 1 to 5 per cent; stocks of a few corporate facing private banks also fell. Part of this weakness can be attributed to the strong surge witnessed by these stocks in recent times in anticipation of concrete measures to solve the bad loans issue. Lack of clarity around further action by the Reserve Bank of India (RBI) as well as quantum of hair cuts required to be taken by the banks while selling or liquidating the bad loans were other factors that pulled down the banking stocks in Friday's session.Nevertheless, it is a step in the right direction. As bankers were sceptical to take any decisions, the new measures pass the baton to RBI, which will now have more powers and is expected to deal with the bad loans issues firmly. Mahesh Patil, co chief investment officer (equities), Birla Sunlife Asset Management, ...

Financing a recovery

It needs a deeper bond market, not a subsidised bank

2 held for conning people by creating fake SBI site to sell credit cards

Two of the accused, Sahil Verma and Monu, were arrested from Gurugram yesterday

Govt may shuffle heads of some PSU banks, including IDBI banks

Union Cabinet's Appointments Committee, headed by PM Modi, will take the final decision

Govt approves second tranche of capital infusion in PSU banks

Announced fund infusion of Rs 22,915 cr out of Rs 25,000 cr marked for 13 PSBs for current fiscal

Govt to infuse Rs 1,894 cr capital into SBI

Government had provided Rs 22,915 crore capital to 13 PSU banks including SBI, PNB and IOB

PSU Banks gain; Nifty PSU Bank index up nearly 2%

SBI, Oriental Bank, Allahabad Bank, Union Bank, PNB, BOI, Vijaya Bank and BOB were up 1% to 4% on the NSE.

PSU banks recover from day's low; Nifty PSU bank index up 1%

SBI, BOB, Vijaya Bank, BOI, Corporation Bank, Uco Bank and Union Bank recovered more than 2% each from intra-day lows