INSUBCONTINENT EXCLUSIVE:
By Sabari SaranEven as the government and the Reserve Bank of India (RBI) try to put together a rescue arrangement for YES Bank, global
cent of bank deposits domestically
respond by Monday.
He said if SBI decides to go alone, it would require an investment of Rs 2,400 crore to pick a 49% stake
The SBI Chairman assured that the bank was looking at the deal as a pure investment and it would ensure that the interest of SBI
shareholders is fully protected
RBI on Friday took over the Yes Bank board and imposed a moratorium on the lender, restricting withdrawal of deposits at Rs 50,000 for a
financial stability risks remain
The global financial services firm observed that the shadow banking crisis that erupted in September 2018 has created a massive credit
This has triggered contagion not only in the financial economy, which remains heavily exposed to shadow banks, but also to pockets of the
real economy like real estate and micro, small and medium enterprises (MSMEs) that depended on cheap financing from shadow banks to sustain
PNB has the highest levels of gross NPAs at 18 per cent, followed by Union Bank of India at 16.5 per cent and Bank of Baroda 11.4 per cent
In fact, it is the lowest among major domestic banks
In comparison, ICICI Bank has a provision coverage of 76.1 per cent and SBI 63.5 per cent
The provision coverage ratio (PCR) is an indication of the provision made against bad loans from the profit generated
A lower PCR indicates that a bank is at higher risk from the unexposed part of the bad debt.
Nomura expects considerable headwinds on
Nomura noted the Yes Bank failure may prompt a shift in deposits from smaller private sector banks to the perceived safety of public sector
banks, which may constrain the ability of these private banks to grow their loan books.
The global brokerage firm believes even if financial
stability risks surrounding Yes Bank are managed well, the underlying problems in the telecom and power sectors may continue to trouble the