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Profitability: A decade of decay

Litigation is a long-drawn process dampening the profitability of banks. For years to come, PSU banks may not be able to present strong balance sheets. The banking sector in India has experienced an unprecedented decay of its loan assets during the decade FY2008 to FY2018. The continuous rise in the gross

Mergers: Do we need bigger banks?

Government of India is considering the merger least four public sector banks: Bank of Baroda, IDBI Bank, Oriental Bank of Commerce and Central Bank of India. The combined loss of these famous four is Rs.21,646 crore. IDBI Bank alone accounts for 38 per cent of the losses. Oriental Bank of Commerce

Lighting a lamp

Since nationalisation, banks were directed to function not merely as deposit collectors and lenders, but much more. This add-on was required to change the traditional image of a banker “as one who lends an umbrella when the sun shines and takes it back when it rains.” Different tasks are given and

Will ‘bad banks’ create good banks?

The bad bank is a differentiated bank, dealing only with NPAs. No, it’s not a bank that is evil.\ India’s bad loan problem has become alarming. The stress sits at Rs.14 lakh crore; meaning there is now no certainty of receiving repayment of that amount. So even if the account is


All bad things do not happen for a good reason. And they occur in an unplanned way. Who would have imagined Padma Bhushan Chanda Kochhar’s fall from grace? The Indian banking system is squeaking under the weight of Non-Performing Assets (NPA) to the extent of Rs.730,000 crore. The fraudulent transactions crisis

Thirty more cities seek to become SMART

The banking sector has a crucial role to play in implementing the ambitious plan for developing smart cities. Providing adequate financial support for private investment in housing, hospitals, roads, infrastructure and transport facilities in each of these places is the task assigned to the banks. With the recent announcement of 30 cities

Small finance banks offer high interest rates

Several small banks offer higher interest rates to build their resource base. It has a cost implication. Recently, the Reserve Bank of India has given licences to ten small finance banks. After lengthy scrutinies, nine of them have already entered the banking sector. While the controller of banking is in favour

Aadhaar, niraadhaar and banking

Aadhaar is a 12 digit number issued to all citizens in India by the Unique Identification Authority of India. UIDAI claims 93 per cent of adult residents possesses this unique identity, aka Aadhaar. Aadhaar has now swept the nation off its feet.  Paul Romer, chief economist of the World Bank, hails