IOB symbolises a larger problem seen in the public sector banking space. PSBs are suffering from inefficient managements, government intervention and tough competition from private rivals. Many state-run banks are facing serious asset quality issues.
There are at least four more state-run banks with NPAs above 10 percent. These are United Bank of India (14.29 percent), Punjab National Bank (13.75 percent), Andhra Bank (10.30 percent) and Union Bank of India (10.16 percent). There are two more with over 9 percent GNPAs, Canara Bank (9.71 percent) and State Bank of Travancore (9.38 percent).
All of these will require substantial amount of capital infusion from the government. The bigger question is how much of these funds, which ultimately use the taxpayers money,
There are at least four more state-run banks with NPAs above 10 percent. These are United Bank of India (14.29 percent), Punjab National Bank (13.75 percent), Andhra Bank (10.30 percent) and Union Bank of India (10.16 percent). There are two more with over 9 percent GNPAs, Canara Bank (9.71 percent) and State Bank of Travancore (9.38 percent).
All of these will require substantial amount of capital infusion from the government. The bigger question is how much of these funds, which ultimately use the taxpayers money,
2 comments:
The banks should be managed on professional basis. The mergers, consolidation and synergy of capitals are the need of the hour. There is no point in running these PSBs as state units will make them more sick. Let good sense prevail.otherwise there will be a stage that will lead to closure of the shop on bankruptcy terms.
Why does'nt your good sense prevail? Why dont you gather like minded people and go on a protest march to the parliament and fast there unto death for recovery of bad loans from business houses amounting to thousands of crores?Then the question of management on professional basis,synergy of capitals and bankruptcy will not arise.
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