But selectively, with regulatory scrutiny and special approval, points out Tamal Bandyopadhyay.
The United Western Bank was placed under moratorium to protect the interest of public and depositors due to erosion of its capital base with growing losses.
Public sector banks have lost nearly Rs 2.85 lakh crore on account of loan dues of 13 corporates even as the banks are used to bail out ailing financial institutions such as Yes Bank and IL&FS, United Forum of Bank Unions alleged on Monday. In a press release, UFBU's convener B Rambabu said the organisation calls for a two-day all India bank strike on December 16 and 17 protesting against Banking Laws (Amendment) Bill 2021 and opposing the Centre's alleged move to privatise PSBs. According to the statistics given by the UFBU, the 13 corporates' outstanding dues were at Rs 486,800 crore and it was resolved at Rs 161,820 crore resulting in a loss of Rs 284,980 crore.
The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender. For the next month, Yes Bank will led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.
SBI's ownership should give confidence to depositors and lenders about the bank's solvency.
After acquiring United Western Bank three years ago, IDBI Bank is now once more on the prowl for acquisitions.
The banking regulator is seeking an early exit mechanism for private banks under Prompt Corrective Action.
Housing Development Finance Corporation has joined hands with the Maharashtra government and State Industrial Investment Corporation of Maharashtra, its subsidiary, to bid for control of the troubled United Western Bank.
The ailing United Western Bank on Thursday submitted a scheme of reconstruction to the regulator Reserve Bank, which has placed it under moratorium due to erosion of networth.\n
Global rating agency Standard & Poor's said on Thursday United Western Bank's huge bad loans may affect IDBI's financial profile negatively.
The board of directors would meet on September 21 to discuss the details of the scheme, a bank source told PTI in Mumbai.
Both Allahabad Bank and Canara Bank are in the race to acquire United Western Bank, UWB. C Mahajan, CMD of Allahabad Bank and MBN Rao, CMD of Canara Bank extrapolate on the benefits of taking over UWB. \n\n
Its obsession for growth, chasing corporate clients and giving up its original mandate of meeting the needs of local trade and businesses. A quarter of its loan book has gone bad. That's an error of business strategy, points out Tamal Bandyopadhyay.
Kotak Mahindra Bank's acquisition of ING Vysya Bank is the country's first ever amalgamation of a profit earning entity post the global financial meltdown in 2008.
Will the Financial Resolution and Deposit Insurance Bill endanger our bank deposits?
Unlike in the past, when old private banks compromised upon underwriting standards to take on the bulk, they've now realised that scaling up at the cost of quality isn't worth the while. These banks have also readjusted growth targets when required, and rebalanced books to preserve capital and asset quality.
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