Union cabinet cleared the proposal to inject Rs 12,517 crore capital into about ten state-run banks during 2012-13. The recapitalisation will help banks maintain their Tier-I capital at a comfortable level, and hence remain compliant with the stricter capital adequacy norms unde
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Ministry gets request for full tax break on provisioning
At a pre-Budget meeting with Finance Minister P Chidambaram, several banks have sought full deduction for income-tax purposes on the provisions made by them for bad and doubtful debts. If the request is accepted by the government, it would benefit banks in a big way at a time when non-perfo
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Karaikal Port tries to overcome debt problem
According to media reports, Karaikal Port (KPPL) is finding ways to overcome its huge debt. Among the plans are refinancing or restructuring of debt or terminalisation of its port infrastructure. It is learnt that the port's projection of a sharp growth of traffic from items like fertilisers, crude or petroleum, and containers has not materialised. This is poss
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Dena Bank to provide support to viable units
Dena Bank proposes to provide financial support to those small and medium businessmen whose projects are viable but are facing short-term liquidity constraints. In this regard, the bank plans to evaluate the scheme for the SME (small and medium enterprises) and r
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Gross NPAs of state-run banks rise
Minister of State for Finance Namo Narain Meena informed Lok Sabha that the gross non-performing assets (NPAs) of public sector banks have increased from 2.28 per cent in March 2010 to 4.01 per cent in September 2012. During the same period, the gross NPA (as a percentage of gross advances) of SBI Group, rose from 2.82 per cent in March 2010 to 5.16 per cent in September 2012,
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Firms seek debt recast for 2nd time
More and more companies are applying for second round of corporate debt restructuring (CDR) because of their inability to service loans, a report by brokerage firm Prabhudas Lilladhar shows. The report shows that not only is the number of debt-restructuring proposals reaching CDR cell on the rise, the quality of cases is
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Ramesh finds fault at microfinance model
Union Rural Development Minister Jairam Ramesh remarked that it is not possible to alleviate poverty through microfinance institutions (MFIs). In his valedictory address at the recently held Micro finance summit, the minister said one should be somehow more modest in the expectation of micro-finance and micro-finance institutions. To think that we are g
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Govt to decide on funding for state-run banks
Financial Services Secretary DK Mittal informed that the government would soon decide on allocation of funding to boost the capital base of public sector banks. He also said that boards of each of the banks that need capital would have to decide whether they want to infuse capital through a rights issue. Leading public sector banks that need capital infusion are
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Earnings of banks came under pressure in FY12
Key earnings parameters of scheduled commercial banks (SCBs) came under pressure during 2011-12 because of slowdown in the
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Bank to raise corporate business
Bank of Maharashtra aims to increase the share of corporate sector in its overall business to 50 per cent this financial year from the current 42 per cent