Breaking news

Meghalaya Governor Satya Pal Malik’s stand has not softened even after moreAll You Need to Know About Cryptocurrency in India: Trends, Legality and more The Champaran Foundation, in collaboration with InFeed, organised an online more In one of the biggest leaks ever of offshore financial records, the more The Champaran Foundation, in collaboration with InFeed, is inviting entries more The recently concluded German elections on September 26, 2021 have given a more According to latest news reports, China has been on a defense infrastructure more A new line of argument has already come to dominate the public sphere: it’ more The government has gone one step further to detect community spread of the more The government has issued an order to abolish the six allowances, including more Aarogya Setu application launched by NIC is aimed to track COVID-19 affected more SEOUL| South Korea’s unemployment rate was unchanged in April as the more Amid the outbreak of Corona pandemic in the country, Indian government has more Prime Minister Narendra Modi in his address to the nation on Tuesday indicated more Corona infection in the country is taking a macabre form. So far, more than 74 more Congress General Secretary Priyanka Gandhi Vadra has written a letter to UP more On Tuesday, Prime Minister Narendra Modi announced a package of Rs 20 lakh more

Indian Banks Would Need 2.1 Lakh Crore in 2 Years : Moody’s

India's PSBs need 2 lakh crore in next two years

Moody’s Investors Service on Friday said that in view of weak capital reserves, public sector banks (PSBs) would need external capital up to Rs 2.1 lakh crore in two years. Government support will be the most reliable source for this. The capital reserves of PSBs are Rs 1.9 lakh crore.

Moody’s vice president and senior lending officer Alka Ambrasu said the sharp decline in the Indian economy and the outbreak of the Corona epidemic would damage the quality of PSB’s assets and increase the cost of debt. He said, PSB is dominant in India’s banking system.

In such a situation, any failure of theirs can endanger financial stability. We hope that the government’s support will continue. Moody’s said in a report titled ‘Banks will have capital shortage once again due to Corona’, especially retail and small business loans will deteriorate asset quality.

Moody’s said, India’s economy will decline sharply during 2020-21. However, there is a slight improvement in the economy in 2021-22. The report states that banks will face huge capital shortfall due to rising debt costs.

Story Page