Stocks of public sector undertakings (PSUs) have been on fire in the past year as investors cheered an improvement in key operating metrics and embraced counters of these state-owned enterprises, analysts suggest. The S&P BSE PSU Index has gained over 90 per cent in the past year, rising much higher than the S&P BSE Sensex, which has rose nearly 19 per cent during this period, according to ACE Equity data. The BSE PSU Index, reports show, has delivered a compound annual growth rate (CAGR) of 28 per cent (including dividends reinvestments) over five years and risen by almost 60 per cent in the past year.
As banks' chase for customers to collect cheap deposits is not fructifying, they are forced to offer inflation-beating real interest rates on fixed deposits now, and state-run banks led by Punjab & Sind Bank tops the chart offering 8-8.50 per cent per annum deposit rate. Banks are forced to offer inflation-beating deposit rates for a tenor ranging from 200 to 800 days as credit growth has been far outpacing deposit mobilization throughout this fiscal, leading to a funding crunch.
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.
Public sector banks' cumulative profit crossed the Rs 1 lakh crore-mark in the financial year ended March 2023, with market leader State Bank of India (SBI) accounting for nearly half of the total earnings. From posting a total net loss of Rs 85,390 crore in 2017-18, the Public Sector Banks (PSBs) have come a long way as their profit touched Rs 1,04,649 crore in 2022-23, according to an analysis of their financial results. These 12 PSBs witnessed 57 per cent increase in total profit compared to Rs 66,539.98 crore earned in 2021-22.
'This segment has performed very well for us and this is reflected in our bounce rate which is about three to four per cent.'
'Even though Gandhiji did not know me well, Sardar knew and remembered me working with him till the Congress was banned.' Glimpses from the fascinating memoirs of Chakkedath Sankarankutty Menon, the stenographer who worked for Mahatma Gandhi and Sardar Vallabhbhai Patel during the freedom struggle.
Lieutenant General Sahir Shamshad Mirza is the Pakistan army's new chief of general staff, notes Rana Banerji, who headed the Pakistan desk at the Research and Analysis Wing, India's external intelligence agency.
The Reserve Bank of India's rate-setting panel on Wednesday began its three-day deliberations on the next bi-monthly monetary policy amid expectations of at least a 35-basis-point hike in the interest rate to check high inflation. If raised, it will be the third consecutive hike in the repo rate -- the short-term rate at which the RBI lends money to banks. The central bank has already announced to gradually withdraw its accommodative monetary policy stance.
Unlike Israeli company NSO, whose sale of Pegasus cyber tech grabbed worldwide attention, and other manufacturers of offensive-cyber products, Cellebrite operates in a grey area between security exports and civilian ones.
Rana Banerji, who headed the Pakistan desk at the Research and Analysis Wing, India's external intelligence agency, on the latest changes among Pakistan's top generals.
It won't be easy for the banking sector to better its performance every quarter, predicts Tamal Bandyopadhyay.
Finance Minister Nirmala Sitharaman on Monday said the government would infuse Rs 20,000 crore into public sector banks (PSBs) in 2021-22, to meet the regulatory norms. For the current financial year also, the government had made a provision of Rs 20,000 crore for recapitalisation.
Zero-coupon bonds don't give out interest but are issued at a deep discount to the face value, making it difficult to ascertain the net present value.
These promotions will allow General Bajwa to shuffle the deck on the top, but this is likely to be a limited reshuffle, points out Rana Banerji, who headed the Pakistan desk at the Research and Analysis Wing, India's external intelligence agency.
Chastened by the Kargil conflict, Pervez Musharraf will be remembered for gradually lowering the profile of terrorism and seeking a realistically negotiated settlement to the issue of Jammu and Kashmir, notes Ambassador G Parthasarathy, who served as India's high commissioner to Pakistan when Musharraf seized power in a coup in October 1999.
The drop in net interest margin will separate the men from the boys, explains Tamal Bandyopadhyay.
With the rise in interest rates, bond yields have been on the rise; this will dent banks' treasury profits. Also, many retail borrowers may find it difficult to service their loans when the loan rates rise, points out Tamal Bandyopadhyay.
The cases pertain to State Bank of India, Punjab National Bank, Andhra Bank, Oriental Bank of Commerce, Indian Overseas Bank, Allahabad Bank, Canara Bank, Dena Bank, Punjab and Sind Bank, Central Bank of India, Union Bank of India, IDBI Bank, Bank of Baroda, Bank of Maharashtra and Bank of India.
Unlike any other national asset, which is typically sold to the highest bidder, the profile of the bidder is the most important criterion for a licence to bank, and even for acquiring more than 5 per cent stake, explains Tamal Bandyopadhyay.
The annual earnings of a non-executive chairman of a PSB is capped at Rs 10 lakh, inclusive of fees for attending board meetings. This is way below the compensation of the chairman of any private bank, reveals Tamal Bandyopadhyay.
There were reports of lobbying within the Pakistan army for the ISI DG's post, which falls vacant in June, reveals Rana Banerji, who headed the Pakistan desk at the Research and Analysis Wing, India's external intelligence agency.
Collectively, the pack of 12 has posted a 50 per cent rise in profits -- Rs 25,685 crore. On a quarter-on-quarter basis (that is, September over June), the rise is 68 per cent. Public sector banks have never had such a stellar performance, explains Tamal Bandyopadhyay.
That's the only way to convince those who have money to return to the bank fold, ditching other asset classes, says Tamal Bandyopadhyay.
Despite persisting questions among peer officers in the army about his professional competence and ethics, after his recent 'triumphal' Kabul sojourn, Faiz Hameed remains the hot favourite of both General Bajwa and Prime Minister Imran Khan, notes Rana Banerji, who headed the Pakistan desk at the Research and Analysis Wing.
If the banks throw caution to the winds for building loan books, the hydra-headed bad loans may resurface and spoil the party, warns Tamal Bandyopadhyay.
This is part of the first batch of Supplementary Demands for Grants for 2020-21 moved by Finance Minister Nirmala Sitharaman in the Lok Sabha.
Not all public sector banks are back in the black, but their collective net profit for the year is Rs 32,346 crore against a Rs 9,013 crore loss in the previous year, points out Tamal Bandyopadhyay.
We'll need to wait a couple of years to see how many restructured loans turn bad and whether some banks fall victim to their obsession for growth, explains Tamal Bandyopadhyay.
On October 31, Chaudhuri was arrested from his Delhi home by the Jaisalmer police for his alleged role in crippled Rs 200 crore Garh Rajwada hotel project in the city which was sold for Rs 25 crore to Alchemist ARC in March 2014. The project was financed by the bank in 2007.
How Pakistan army chief General Qamar Javed Bajwa deals with the ensuing reshuffle of lieutenant generals would be interesting to watch, notes Rana Banerji, who headed the Pakistan desk at the Research and Analysis Wing, India's external intelligence agency.
Punjab and Sind Bank trounced Air India 6-0 in the Dhyan Chand Cup hockey tournament.
A consortium of Indian banks led by the State Bank of India (SBI) returned to the High Court in London for a bankruptcy application hearing against liquor tycoon Vijay Mallya, as they pursue the recovery of debt from loans paid out to his now-defunct Kingfisher Airlines. At a virtual hearing before Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs on Friday, both sides deposed retired Indian Supreme Court justices as expert witnesses on Indian law in support of their arguments for and against a bankruptcy order against Mallya in the UK. While the banks argued a right to waive their security over the Indian assets involved in the case in order to recover their debt in the UK, lawyers for the 65-year-old businessman argued that the funds in question involved public money held by state-owned banks in India which precluded them from such a security waiver.
In the semi-finals of the DDA invitation hockey tournament, IOC will play Punjab Police, while Punjab and Sind Bank will meet Army XI.
The former trounced CRPF while the policemen got the better of Indian Oil in the semi-finals of the \n\nthe Shivaji hockey tournament.
A UK court hearing an urgent application on Monday refused to sanction the release of substantial sums held with the Court Funds Office (CFO) as part of bankruptcy proceedings being pursued against liquor tycoon Vijay Mallya by a consortium of Indian banks, led by the State Bank of India (SBI).
The meeting is expected to chart a road map for cleaning up their balance sheets and boost credit flows, reports Somesh Jha.
A goal in each half enabled the policemen beat Punjab and Sind Bank 2-0 in a one-side final.
'The PSBs ended up recording Rs 7,709 crore losses in the March quarter compared to the Rs 11,688 crore profits of their private peers,' reveals Tamal Bandyopadhyay.
Pakistan cricket's tainted duo Salman Butt and Mohammed Asif started their journey on the road to redemption with both the convicted spot-fixers making a successful return to competitive cricket during the National One-Day Competition, in Hyderabad (Sind). Having served a prison sentence and a subsequent ban, it was the duo's first match in five years and four months since they were caught for spot-fixing during the 2010 series against England. Former national captain Butt scored an attractive 135 while swing bowler Asif looked in good rhythm taking 2/23 in 6 overs with their team Water and Power Development Authority (WAPDA) defeating FATA region in a match played at Hyderabad (Sind).
