
Adani connection? Nifty PSU Bank index jumps 5%
The rally in PSU Bank index was led by index heavyweights such as Union Bank of India, State Bank of India, Bank of Baroda, Punjab National Bank, which rose up to 7%.
The rally in PSU Bank index was led by index heavyweights such as Union Bank of India, State Bank of India, Bank of Baroda, Punjab National Bank, which rose up to 7%.
Domestic banks may become the main source of funding for the group, resulting in increases in banks' exposures to Adani, says Moody's.
The upgrade reflects an improvement in India's macro profile to "Moderate+" from "Moderate", says Moody's.
Bank of Baroda, Bank of India, and Punjab & Sind Bank hit their respective 52-week highs after Morgan Stanley expressed optimism about public sector banks.
An important aspect that is often ignored by researchers proposing privatisation is the role played by PSBs in financial inclusion, says RBI.
Public sector banks have exposure of ₹58,524 crore to stressed enterprises.
In India, financial services are still plagued with multiple challenges. A resurgent India needs greater innovation in banking, especially in customer management and retention.
The increase in delinquency rates was not uniform; It was most pronounced for loans against property, home loans, and credit cards. Overall delinquencies improved for auto loans.
Mark Matthews, head of research (Asia) at Julius Baer, says there are no signs of a pickup in the Indian economy yet, but a ‘trickle through’ is likely in a quarter or so.
The government’s partial credit guarantee on asset purchases does not address investors’ long-term concerns about the sector’s exposure to stressed real estate: Fitch Ratings.