Psbs in a sentence

The Centre, if it is keen to ward off future bad loan build-ups at PSBs, needs to empower the RBI to effectively supervise PSBs and to allow an independent entity like the Bank Boards Bureau to fill key management positions.

Addressing PSBs’ capital and governance issues will be critical, if they are to get ready for the next leg of lending.

Also, a report that the government may not announce further capital infusion in the PSBs in the upcoming Union Budget further dented the sentiment,” Ajit Mishra, VP Research, Religare Broking told Financial Express Online.

A sharp rebound in heavyweight financials on news pertaining to government may be considering corporate and foreign bank participation in privatization of select PSBs led market to move higher.

He said PSBs would only provide funds if security is allowed to be monetized.

In all, the government has infused Rs 65,443 crore in PSBs in the last financial year as both regulatory and growth capital, as per Budget documents.

India’s public sector banks, also commonly known as PSBs, had INR 6.8 trillion ($93 billion) worth of nonperforming assets in March, according to data from.

Public-sector banks (PSBs) such as Punjab National Bank and Bank of India (BoI) launched these special credit facilities in late March soon after the nationwide lockdown began.

The government had refrained from committing any funds in the FY21 budget for PSBs.

The PSBs are expected to drive financial inclusion in Nigeria as it was done in Kenya where mobile banking has been greatly successful due to the effect of the telecommunication firms in the East African country.

Each of the amalgamated PSBs will be adequately capitalised.

Earlier, RBI Governor Das highlighted importance of PSBs for the economy at all times and especially at the present juncture in helping meet broader economic goals.

However, economist Jayantilal Bhandari said that merger of PSBs is the need of the hour.

It may be recalled that Finance Minister Nirmala Sitharaman had on August 30 announced as part of mega merger plan for PSBs that Oriental Bank of Commerce and United Bank of India will get amalgamated into Punjab National Bank.

The bank has been reporting profit over the last five years, even as other PSBs reported losses and sharp rise in bad loans.

The challenge of rural finance can be better managed by enthusiastic and energetic young officers than those posted past their prime or before retirement, which often is the case in many PSBs.

The decision to infuse ₹70,000 crore capital into PSBs to improve lending is expected to generate ₹5 lakh crore in extra credit.

Thematic papers by domain experts on various challenges facing the banking sector were discussed during the meet with a view to suggest reforms in Public Sector Banks (PSBs).

The number of PSBs will come down to 12 from 27 in 2017 following the move that is aimed at making state-owned lenders global sized banks.

However, the many tales of collusion and corruption mentioned here address some unanswered questions and strengthen the case for an end to the PSBs.