Tuesday, March 19, 2013

Capital raising woes may make small Indian banks takeover targets: S&P

...........Some smaller banks could also become takeover targets, which could result in consolidation of a fragmented sector, said Deepali Seth, S&P’s credit analyst. The biggest challenge for the sector is the state of Indian public finances. “The government’s large fiscal deficit will limit its ability to inject capital into government-owned banks, which currently have less capital adequacy than the private and foreign banks operating in India,”........

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