Rajan said banks have typically become used to reasonably slow moving base rate which gives them time to adjust the deposit cost before they adjust lending.
There is a case for analysing the fiscal deficit, separately for expenditure and investment.
Their net NPA as a proportion of net advances were 2.2 per cent, compared with 1.7 per during the same period a year earlier.
Sensex catapults 1,241 points and Nifty vaults 382 points in two sessions in a row.
Pulbic banks have no reason to cheer Budget announcement.
SBI's net profit for the quarter rose 30.3% to Rs 2,910 crore ($468.4 million), from Rs 2,234 crore a year earlier on the back of rise in net interest income, fees, and control on employee costs.
Many emerging economies have witnessed a flight of foreign portfolio capital and their currencies have slumped against the dollar.
PS banks need to pull up their socks to improve cash flows.
Sweden has the world's highest negative rate.
Food and fuel are two perennial areas of concern.
Economic Affairs secretary S C Garg said inflation has consistently come down since 2014 and will not cross 4 per cent this fiscal.
Analysts say loan growth, Casa ratio and exposure to sectors under pressure did not indicate any stress at United Bank.
The Sensex had bounced back with gains of 94 points or 0.3%
Banks are in need of government support to manage the stressed assets
The banking, oil and metal sectors were the top sectoral losers on the BSE, while IT stocks rendered support at lower levels.
Securities held in custody accounts reached a new high.
'Every few days, I wake up with a sense of restlessness that time is running out'... 'We have created a due process for stressed assets to resolve, but there is no concrete plan in place for public sector bank balance sheets,' says RBI Deputy Governor Viral Acharya.
While an uptick in economic activity will help banks come out of some of their problems, some issues currently facing the Indian banking industry are of its own doing says Pramit Jhaveri.
The most preferred CoCo bonds are those through which banks raise their additional Tier-I capital.
In first half of year, firms raise more than banks on low US treasury rates.
Top 5 losers include Infosys, TCS, ITC, M&M and HUL.
However, the budget arithmetic is slightly optimistic.
'With technology advancing rapidly, the need for branches is declining.'
Over the short to medium term, valuations are more likely to move down than up.
Rate sensitive sectors rallied the most led by banks while metals surged on rebound in commodity prices
The Finance Minsiter says country requires 'a larger opening out in more sectors, stability of policy and tax regime'
Lack of decisiveness and courage to deal with PSBs may turn out be the biggest impediment to the Modi government's economic initiatives, says Debashis Basu.
Modi govt has a unique style of working, say experts.
Indeed, this is one policy area where the Modi-led government is different from the one that was headed by Atal Bihari Vajpayee.
Investors booked profits at higher levels despite the growth oriented Budget.
The cutback on export credit refinance facility is another step towards a shift away from sector-specific liquidity allocations.
SBI remains a favourite of most brokerages in the PSB segment.
Prime Minister Narendra Modi will hold discussions with public sector banks (PSBs) and financial institutions to draw up an action plan for banking reforms
RBI governor Raghuram Rajan has slashed rated by 50 bps.
In an interview with Business Standard, Arundhati Bhattacharya says she expects stalled projects coming back on track in two quarters.
The Bharatiya Janata Party regime will have to make good on this election slogan to restore state-owned banks to health, says Rajiv Lall.
With Jaitley preferring continuity over change, good days might take a little longer to arrive, says Shankar Acharya.
The prime minister's August 15 address was undoubtedly inspirational and outlined important economic and social objectives, such as making India a global hub for manufacturing, ensuring bank accounts for all poor families, major thrusts in sanitation and cleanliness, and a radical restructuring of the Planning Commission.
Jaitley's team presents a quintessential mix of foreign-educated, intellectual technocrats and seasoned bureaucrats
'The Reserve Bank's independence has remained a work in progress, an enduring challenge that the nation has been grappling with on an ongoing basis,' says RBI Deputy Governor Dr Viral Acharya.
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