Mostly the psu banks Npas are nearing its top..I mean all the bad news about npas are being discounted and factored...today the average Gnpas of psu banks are around 11% to 12% and the Npas are around 9%...but if you have noticed the RBI is hell bound to clear the banking system of NPAs... The Npas are topping out can be clear visible by many factors.. Firstly almost all the PSUs banks have shown Huge quarterly losses and a very high provisions for npas.. This type of bad quarterly results will be continued for the next few quarters... But most important thing is that structural changes have been happening in the banking sector...thanks to dr Rajan...believe it or not one year of more pain in the PSUs banks and the scenario will change drastically for the banking sector...also Rajan in one of his interview said that the PSUs banking sector will change completely after two years time...secondly the Indian government is infusing money in the PSUs banks to revive them...also the government is infusing money in the PSUs banks on performance basis...ie reduce the npas and get your act together and take the money to revive the bank...excellent...giving money to bank is on performance basis...thirdly the interest from these levels will go southwards as the clues are easily visible from g sec 10years interest rates which will revive all the businesses and give a new life to the corporates who are heavily burden...off course all this will take time but the course is set for the revival of the banking sector...
No comments:
Post a Comment