Thursday, September 26, 2013

Capital ratios of public sector banks under pressure


The joke doing the rounds in banking circles these days is that investors are better off putting their money in bank deposits than in bank stocks. The absence of any bank stock from several model portfolios of leading brokerages indicates the analysts are not just making light of a “stressful situation.” The sharp run up in bad loans is not just a cause because stressed assets are eroding capital ratios of state-owned banks. The markets had hoped that RBI’s new boss Raghuram Rajan would start easing rates to boost growth but.............


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