Page 4 - Private Sector Banks
Moody's slashes FY20 growth forecast to 4.9% on weak household consumption
Private-sector banks have a larger exposure to retail loans and may be more at risk
 "Moody's slashes FY20 growth forecast to 4.9% on weak household consumption")
Private banks score on core operations, better control over bad debt in Q2
While profit before tax grew 68.1%, net profit showed an increase of only 1.4%
 "Private banks score on core operations, better control over bad debt in Q2")
Small finance banks lag in opening Jan Dhan Yojana accounts in Odisha
This is despite their strong branch network and plans to expand retail banking operations; PSB lead race, accounting for 70% of such accounts opened in the state
 "Small finance banks lag in opening Jan Dhan Yojana accounts in Odisha")
Can private and public sector banks win back investor confidence?
Valuations have already melted by 15 - 50% for many private sector banks
 "Can private and public sector banks win back investor confidence?")
19 lenders file 529 wilful default cases worth Rs 18,500 cr in June quarter
Amount outstanding is up by over a tenth in a quarter
 "19 lenders file 529 wilful default cases worth Rs 18,500 cr in June quarter")
Market salary for a few in a public sector bank could be a chimera
The possibility is that high calibre chief risk officers in the PSBs already earn Rs 1 crore to Rs 2 crore, whereas even SBI chairman could be earning less than Rs 30 lakh
 "Market salary for a few in a public sector bank could be a chimera")
Private sector banks' pledged shares exposure up by a third since January
Increased pledging is often seen as a sign of liquidity issues with promoter groups
 "Private sector banks' pledged shares exposure up by a third since January")
No, private sector banks were not blameless; nationalisation was inevitable
Bank nationalisation was not driven by leftist ideology but by a sense of drift in the country and by banks dragging their feet on serving rural areas
 "No, private sector banks were not blameless; nationalisation was inevitable")
Controlling the ownership of banks
A credible board, an independent management and recruiting the best talent are better mitigants of control than regulation
 "Controlling the ownership of banks")
Provisioning dents PAT for private banks despite high interest income
Net profit fell 1.6% as provision accounts for 44 per cent of private banks' operating profit
 "Provisioning dents PAT for private banks despite high interest income")
Bank unions say time is ripe for nationalisation of private sector banks
Many private sector banks which are pampered by the government are in crisis, and ICICI Bank and Axis Bank are the examples, AIBOC General Secretary D T Franco said in a statement
 "Bank unions say time is ripe for nationalisation of private sector banks")
