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Tag: PSBs

More than dozen PSBs announce COVID-19 emergency credit line

More than dozen PSBs announce COVID-19 emergency credit line

Finance
New Delhi: More than a dozen public sector banks out have announced COVID-19 Emergency Credit Line to deal with the hardship faced by various sectors of the economy. Though public sectors banks (PSBs) were quick to respond with steps to deal with the hardship faced by various sectors of the economy, private sector banks such as ICICI Bank, HDFC Bank and Axis Bank are yet to come out with any relief measures for their customers. As many as 15 PSBs out of the total 18 government-owned banks till Thursday evening announced schemes to mitigate hardship faced by various segments. Taking the lead, the country's largest lender SBI last week announced an emergency credit line to meet any liquidity mismatch for its borrowers. The additional liquidity facility COVID-19 Emergency Credit Line (CECL...
Ahead of festive season, PSBs to go on lending spree

Ahead of festive season, PSBs to go on lending spree

Finance
NEW DELHI: In a bid to push credit before the festival season and revive growth, the government has asked state-run banks to hold open houses in 400 districts of the country, tasking them with extending credit to five new customers for every existing borrower. In addition, banks will not declare any stressed assets of MSMEs as non-performing until March 31, 2020, to help them recover. Banks have acquired Rs 9,155 crore worth of pooled assets of nonbanking finance companies and housing finance companies under the partial credit guarantee scheme, finance minister Nirmala Sitharaman said at a media briefing after reviewing the performance of state-run lenders on Thursday. Proposals for acquiring another Rs 32,000 crore under the scheme are in the pipeline. “In public view, the scheduled bank...
Corporate governance standards at PSBs much better than ever before, says Goyal

Corporate governance standards at PSBs much better than ever before, says Goyal

Finance
Emphasising that corporate governance standards being followed by public sector banks are much better than ever before, Finance Minister Piyush Goyal today said the government has stopped the "phone-call thing" coming in from Delhi to the banks. In an apparent dig at the previous UPA regime, Goyal said that not a single phone call would go to "give a loan, to address a loan, to restructure a loan or to settle a loan". Against the backdrop of high amounts of stressed assets in the banking system, the ruling BJP had alleged that earlier, banks used to get calls from the higher ups in the national capital to provide loans to various entities. Prime Minister Narendra Modi had also made references to it while replying to the debate on no-confidence motion in the Lok Sabha last month. Goyal told...
PNB, other PSBs may get Rs 8,000 crore lifeline

PNB, other PSBs may get Rs 8,000 crore lifeline

Finance
NEW DELHI: The government may infuse about Rs 8,000 crore in five or six state-run banks that are likely to fall short of regulatory capital requirements, a senior finance ministry official said. These banks may include Nirav Modi scam-hit Punjab National Bank. “There are some banks that have issued additional tier 1 capital bonds and the interest payments are due. Now if they don’t meet the regulatory capital norms, they will not be allowed to make such payments,” the official said. The government cannot allow public sector banks to default on such payments, which will impact their rating, the official said. Banks raise capital through AT1 bonds, which are perpetual in nature and therefore provide higher interest rates to investors. A high level of bad loans and widening...
Banks Board Bureau has some key suggestions for PSBs

Banks Board Bureau has some key suggestions for PSBs

Finance
The Banks Board Bureau (BBB), headed by Vinod Rai, completes two years on March 31. The government says it has no plans to scrap the bureau but there is no clarity on its role going ahead. BBB has released a compendium of its recommendations on reforms at public sector banks (PSBs) in a report that also cites a lack of engagement with the agency by the government. Here are some of its key suggestions:APPOINTMENTS* Ownership-neutral guidelines for appointment to boards of banks * Boards should be empowered to appoint part-time/non-executive directors COMPENSATION*Delink bank compensation from those of civil servants; introduce performance-based compensation * Short-term variable salary component * Long-term component of stock options PERFORMANCE ASSESSMENT* Relative performance rating (RPR...