New-generation private sector banks such as ICICI, HDFC, Axis, Kotak etcetera owe their existence to the recommendations of the first Narasimham Committee.
The central bank held 72.5 per cent equity in Nabard worth Rs 1,450 crore, of which 71.5 per cent amounting to Rs 1,430 crore were divested way back in October 2010 and the residual shareholding was divested on February 26, 2019.
Credit rating agency ICRA has said that mergers are one of the best options for growth of Indian banks but warned that it may not solve some "basic problems" of Indian banks plagued by inferior asset quality, poor management and lack of autonomy.\n\n\n\n
In FY23, the State Bank of India (SBI) reported a 57.4 per cent jump in its net profit to Rs 55,684.17 crore. But the chairman of the country's largest bank, Dinesh Khara's annual pay for this creditable performance was just Rs 37 lakh (his peers at state-run banks are no better off). Look at his private bank rivals - most pocketed in excess of Rs 7 crore annually - plus stock options.
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Addressing a Ficci-organised banking summit in Mumbai, he at the same time said that it will take several years for the country's banks to achieve the status of a large global bank.
Never before has the need for creating an ambience for economic policy reforms been as critical as it is now, points out A K Bhattacharya.
The discussion paper is released at a time when the central bank is sifting through 26 applications seeking an entry into the fray.
Since March 31, 2022, the PSBs' market cap has risen 43.7 per cent, from Rs. 7.29 trillion to Rs. 10.47 trillion. It's time for the government, the majority owner of public sector banks, to reap the benefit of the rally in bank stocks, recommends Tamal Bandyopadhyay.
Indeed, there were frauds, and the politician-banker-industrialist nexus played a role in the rise of NPAs, but governance issues in Indian banking are far more nuanced and complex, reveals Tamal Bandyopadhyay.
No government can 'ignore inclusiveness in a democracy', Montek Singh Ahluwalia tells Anjuli Bhargava.
For development finance institution to succeed now, the government must stand like a rock behind it and be patient.
The Governor had submitted his report to the Public Accounts Committee and put the blame on 'overall economic downturn'
Parekh ensures that he never forgets the importance of correctness.
It rejected Mann's apology saying his statements to the panel were contradictory with the MP from Sangrur denying the charge that he had breached Parliament's security arrangements.
The government package for public sector banks, announced last Friday, has been welcomed by the stock market with the PSU banking index booking smart gains.
Treading a cautious path on the Telangana issue, Andhra Pradesh Chief Minister N Kiran Kumar Reddy said in Hyderabad on Thursday that the Centre should address the complicated issues concerned with the bifurcation of the state first before it embarks on the process.
Banks feel happy shifting their toxic assets from loan books to investment books while the ARCs enjoy the management fees with a smile, observes Tamal Bandyopadhyay.
'We can't have the best of both worlds -- large, efficient, world class government-owned banks, doing social banking and making profits. 'Why not set them free from the shackles of such obligations and run them as business units?' says Tamal Bandyopadhyay.
But their trajectory and direction have been largely influenced by politics and the political leadership's understanding of how the economy needs to be managed, explains A K Bhattacharya.
The enquiry committee has been asked to file its report by August 3 and Mann has been asked to make a statement on Tuesday at 10:30 am.
On July 25 too, the speaker had asked Mann not to attend the House till a decision was arrived at.
The government is considering a proposal to privatise some state-owned banks in phases.
Government employees in 13 districts of coastal Andhra and Rayalaseema launched an indefinite strike on Tuesday protesting the proposed bifurcation of Andhra Pradesh.
This is the first time that no-confidence motion notices have been moved against the Modi government in 4 years.
The second half of the budget session of Parliament, beginning on Monday, is all set to be a stormy affair with opposition parties closing ranks over the imposition of Presidents' rule in Uttarakhand.
