Tag: banking sector

Capital injection and simultaneous clean-up will help the public sector banks, says Kamath-

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The chief of the New Development Bank, K.V. Kamath said the government needs to inject capital in public sector banks (PSUBs) simultaneously while the clean-up working is still ongoing.

In an exclusive interview with CNBCTV18, the banker provided a three-step prognosis for the public sector banks that are under stress in the market currently.

“I read about what the government wanted to do that is inject capital. I would think that is the first step that needs to be done for any bank if indeed that is the challenge that is being faced. So, capital needs to come in. Clean-up needs to be done simultaneously. Other than that the third element is get right people to run this structure,” Kamath said.

11 out of 21 public sector bank are under the scrutiny of the Reserve Bank’s prompt corrective action (PCA) for its non-performing assets (NPA) and five more are expected to be included.

Kamath concluded saying that if the government implements the given rectifications in the banking sector, it will be in a better position to take the call on how it wants its banking sector to function.

On Monday, during the trading hours, State Bank of India, Oriental Bank of Commerce, Union Bank, IDBI and Bank of India are at its day’s low.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow