During April-June 2013, public sector banks may earn Rs 5,000 crore to Rs 7,000 crore owing to treasury gains as yield on government securities have declined by 60 basis points during April and May this year. This estimate on the treasury gains of state-run banks was given by Icra in a recent research report. The report noted that yield of government securities has fallen in the last two months and this will improve earnings of public
Tag: lending
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Minister raises concern on rising bad loans
Finance Minister P Chidambaram raised concern about the rising non-performing assets (NPAs) in the banking system and asked banks to control it order to prevent adverse impact on profitability. Huge provisioning for NPAs is eating into the profits of state-owned banks, the minister said while addressing the annual general meeting of the Indian BanksÂ’ Association
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SBI to take Rs 2 bn hit due to provisioning norms
Pratip Chaudhuri, Chairman of State Bank of India (SBI) informed that the total impact of Reserve Bank of India (RBI)Â’s revised norms on provisioning for non-performing assets (NPAs) and restructured loans would be about Rs 200 crore a year. He said this would be less than 1 per cent on a PBT (profit before tax) basis and hence it may not have a significant impact on SBIÂ’s profitability
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PFC to acquire stake in state-run bank
Satnam Singh, Managing Director of Power Finance Corp (PFC) plans to buy a substantial stake in a public sector unit (PSU) bank that would allow it to have a representation at the board level. A month ago, PFC informed its intention to acquire stake in state-run bank to the power and the finance ministries
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Banks take steps to recover bad loans
Media reports indicate that several public sector banks (PSBs) are taking steps to recover loan amount from defaulting corporate borrowers by publishing their names and thereby denting their image. This move by state-run banks is a remarkable shift from their traditional approach of going soft with defaulting borrowers
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SBI to recast Rs 60 bn loan in 3-4 months
In the next three to four months, State Bank Of India, the country's largest lender, expects to restructure Rs 50-60 billion ($0.9-$1.08 billion) of loan. This information was given by the bank Chairman Pratip Chaudhuri while interacting with media persons. During January-March quarter, the bank restructured Rs 80.9 billion ($1.46 billion) in loans. The bank's total rest
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SBI recasts $1.5 bn loans in March quarter
Between January and March 2013, the country's largest public sector lender State Bank of India (SBI) restructured almost $1.5 billion loans. The bank announced its first quarterly decline in net profit in two years owing to fall in interest income and increase in provisions for loan
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Allahabad Bank to reduce bad loans
Agency reports indicate that Allahabad Bank intends to bring down its gross non-performing assets (NPAs) to around 3.2 per cent by March 2014 from 3.92 per cent in 2012-13. Shubhalakshmi Panse, Chairman and Managing Director of the bank is quoted as saying that the bank was monitoring bad accounts on a daily basis along with focus on recovery
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Net profit of PNB declines 21%
Net profit of state-owned Punjab National Bank declined almost 21 percent to Rs 1,131 crore during January-March 2013 owing to rise in provisions. The state-run firm witnessed 44 percent rise in provisions on a year-on-year basis to Rs 1,478 crore. Total provisions were inclusive of all components like loans, investment and gratuity
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Recovery in sight for small MFIs in FY14
Venkatesh N, Managing Director of Samasta Microfinance expects smaller microfinance institutions (MFIs) to regain their financial position in 2013-14. He expects recovery in the financial position of these MFIs to be driven by the renewed interest of banks and risk capital investors in the sector