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Finance Minister Nirmala Sitharaman also informed that the govt is closely monitoring the impact of coronavirus on Indian economy.
As funding situation erodes, founders are selling businesses to deleverage, or are raising equity to gain an edge over competitors, Axis Capital says.
Former RBI governor Raghuram Rajan says amid the economic slowdown and bad loans crisis, banks will have to focus on mergers instead of better loans.
The merger is crucial for shadow lender Indiabulls, which is seeking to diversify its asset base, while Lakshmi Vilas bank needs to raise capital to meet regulatory norms.
Uncertainty about the timeline of the merges and poor asset quality at the PSU banks is keeping investors away.
The best of the day’s opinion, chosen and curated by ThePrint’s top editors.
Concerns over the Modi govt's bank integration process possibly delaying lending approvals has dampened investor sentiment.
Consolidation comes with many challenges and investors are advised to look for value outside the 10 banks being merged, analysts say.
Merged banks will spend the next six months on integration. Putting their balance sheets to work and issuing new bank guarantees may take a backseat.
Efforts to create larger, healthier lenders may be hurt by shift in attention to aligning resources such as personnel, technology & branch networks.
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