At a time when banking and financial have increased their weightage in the Nifty (it is close to 30 per cent now), the sector is grappling with a peculiar problem. While private banks are leading the way in upping the Bank Nifty index and have also been a point of attraction for massive infusions by FIIs, public sector banks are lagging behind and having a trouble with both their profitability and assets' quality. Of the 12 banks whose NPAs have risen consistently in the last 3 quarters, 9 are PSBs, which is hardly surprising as PSBs are at the forefront of several schemes that government needs to implement.
Not only this, PSBs now also need heavy capital infusion to keep up with the capital adequacy ratios. The RBI had said in September that the government needed to infuse Rs 90,000 crore into state-run banks to meet the upcoming Basel III requirements.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
