NPA-laden banks may increase spreads over benchmark rates to protect their profitability.
Bankers estimate that DHFL raised about Rs 7,000-8,000 crore from retail investors.
The success or failure of the move will depend on the execution rather than the action itself.
After the big-bang merger, the total number of PSBs in India will come down to 12 from 27 two years ago.
Loans mainly from power, manufacturing sectors, UBI may put up the largest chunk.
There is no guarantee, however, that Reserve Bank of India’s (RBI) surplus will always increase.
Aims to allow ‘serious bidders’, to also put to vote proposal to lend more to airline.
Low ‘product profitability’ in home loans for banks like SBI will not allow rates to go down much.
Kanungo acknowledged that global economic scenario is not very encouraging.
Friday’s announcements by the finance minister are welcome, but they will have to be followed by other measures, said Shubhada Rao, chief economist at Yes Bank.
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