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Tag: PSBs

PSBs look to frame common rules to value stressed assets

PSBs look to frame common rules to value stressed assets

Finance
NEW DELHI: The finance ministry is working with state-run lenders to frame a common set of rules for valuation of stressed assets for faster resolution of loans extended by consortia of banks. A senior finance ministry official said a select group of bankers is working to arrive at common rules of valuation. “It has been observed that in cases of joint lending, banks are unable to arrive at a common valuation, which stalls the resolution process. Further, individually, banks also fear that if they agree to a certain haircut, it may not stand the scrutiny of vigilance agencies,” the official said, adding that new norms will address such concerns. The group was formed during ‘PSB Manthan,’ a two-day conclave of PSBs and has representation from all leading banks. A bank executive who is p
Recap will need follow up with structural changes at PSBs: UBS

Recap will need follow up with structural changes at PSBs: UBS

Finance
NEW DELHI: The recapitalisation programme for public sector banks is likely to boost equity market sentiment as it fuels growth recovery hopes, but should be followed up with structural changes at such banks for better results, says an UBS report.According to the global financial services major, though the recapitalisation amount may create a supportive environment for growth, it may not drive growth by itself.The government on October 24 unveiled a Rs 2.11-lakh crore two-year road map to strengthen NPA-hit public sector banks, which includes re-capitalisation bonds, budgetary support, and equity dilution."We think this capital infusion can ease Ind AS adoption for state-owned-enterprise (SOE) banks and accelerate non- performing loan (NPL) clean-up," UBS said in the research note.The repo...
PSBs told to approach alternative mechanism to fast-track mergers

PSBs told to approach alternative mechanism to fast-track mergers

Finance
NEW DELHI: Public sector banks looking to merge would have to approach the new alternative mechanism once they informed the stock exchanges about the plan. "This will ensure that all issues related to consolidation from the government, the promoter and regulator RBI are addressed from the beginning," a senior government official told ET. This would also expedite decision-making and address issues well in time, the official added. “Under the Bank Nationalisation Act, 1969, there are provisions allowing such mergers so there is no need to amend any laws,” the official said. However, due to various court judgements on mergers and acquisition in state-run firms, it is imperative that the merger proposals are approved by Parliament, the official added. “So, the alternative mechanism will h
Growing number of private and PSBs introducing humanoid robots to answer basic customer queries

Growing number of private and PSBs introducing humanoid robots to answer basic customer queries

Finance
BENGALURU: If you walk into the head office of Canara Bank in Bengaluru, the first thing you are likely to encounter is a 4.5-feet tall Kannada-speaking robot called Mitra. The robot, with a HD camera in its head and the Canara Bank logo on its chest, answers close to 500 frequently asked questions ranging from 'lift elidhe?' (Where is the lift?) to 'student loan yeshtu aguthe?' (How much is the student loan?) while zipping around at 15 km/hr. "The robot can listen to customer queries and offers guidance depending upon the question," said KN Ramamoorthy, GM of Canara Bank. The guidance is welcome since the Canara Bank head office has 15 departments and customers are usually clueless about which counter to approach when they walk in for the first time. "Mitra goes around the office ans...