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Topic: Public Sector Banks
In Bad Money, Vivek Kaul writes how public sector banks refrained from recognising bad loans because that meant setting aside money to meet these losses.
A summary of Episode 407 of #CutTheClutter where Shekhar Gupta explains why the government should move out of India’s banking system.
Finance Minister Nirmala Sitharaman also says no Merchant Discount Rate charges will be applicable to select modes of payment from 1 January.
The best of the day’s opinion, chosen and curated by ThePrint’s top editors.
The best cartoons of the day, chosen by the editors at ThePrint.
Consolidation of banks reduces competition, raises fears of cartelisation on interest rates and reduces the hope of privatisation.
Fifty years ago, on 19 July 1969, the Indira Gandhi government had nationalised 14 banks. Even today, PSUs control a substantial percentage of the deposits.
Since 2016, PSBs’ performance has only gone downhill despite Banks Board Bureau’s mandate to reinvent them for greater efficiency, among others.
Govt has also asked RBI to suggest a time frame for the consolidation to create better-capitalised lenders and improve regulatory oversight.
PNB will issue preferential shares to the government to raise the capital to meet interest obligations on perpetual bonds.
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