At 01:19 pm; Nifty PSU Bank index was up 0.36% at 2,981, extending its past two days 3% gain. On comparison, the benchmark Nifty 50 index was trading 0.33% lower at 10,732, up 1.3% during the period.
Sources said Goyal would meet heads and senior executives of PSBs based in the western and southern regions to discuss issues plaguing banks and the way forward for the banking system. The meeting is organised by SBI and will be attended by Rajiv Kumar, secretary in the department of financial services, along with other finance ministry officials, the Business Standard reported.
The government will discuss a road map that banks are supposed to prepare to strengthen their risk mechanism systems. Issues related to multiple banking arrangements, the prompt corrective action (PCA) framework, and plugging gaps in credit flow were likely be discussed, bank executives said, added report. CLICK HERE TO READ FULL REPORT
Moody's Investors Service expects the Indian government's recapitalization plan will still broadly resolve the regulatory capital needs of the country's 21 PSBs and help augment the banks' loan-loss buffers, but will be insufficient to support credit growth.
Under its recapitalization plan, the government plans to infuse Rs 650 billion into the PSBs in fiscal 2019, following the Rs 900 billion infused in fiscal 2018.
Moody's Indian affiliate ICRA says that, with the accelerated recognition of stressed assets during FY2018, the asset quality problems of the banks peaked in March 2018 and further additions to gross non-performing assets (GNPAs) will decline with fresh slippages falling to around 3.0% during FY2019 compared to 7.1% during FY2018 and 5.5% during FY2017.
With the likely resolution of large stressed borrowers under the insolvency and bankruptcy code (IBC) 2016 and proposed resolution under the revised framework for resolution of stressed assets, ICRA expects the recoveries and upgrades to surpass the fresh addition to GNPAs during FY2019. This is expected in turn to result in a decline in the GNPAs and net NPAs to below 9% and 5% respectively by March 2019.