Free Share Market Tips expert report says the financial year 2018 has been disappointing for public sector banks. Due to the increasingly bad loan, government banks have become difficult to make profits. In the fourth quarter, PNB and SBI have recorded a record loss, while most other banks are also showing losses. Despite its past 2 days, the PSU bank index is showing steady growth. Experts believe that the results of government banks are clear that most banks have identified their stranded debt, which will start the process to bring back. In such a situation, hope that recovery will return to the sector in the coming days and the balance sheet will be strong. Outlook is looking better for investment from the long-term perspective.
Free Share Market Tips Experts say that the health of government banks is a big concern, for which the government and the RBI are working together. The problem of NPA in banks is not immediately, but the last 15 years. Recently some such cases have also come up with Nirav Modi. Banks have identified large NPAs. A large NPA account has been referred to NCLT. The case will be run under the IBC. There are also case resolutions like Bhushan Steel. As the cases come out, banks will be able to recover their money. At the same time, 2.11 lakh crore rupees are received by the government banks under the recapitalization plan which has already been started.
What is the situation of government banks
PNB
Loss in Q4: 13417 crores
Provisioning in Q4: 20350 crores
Gross NPA in Q4: 86620 Crores (18.38%)
Net NPA in Q4: 48684 crores (11.24%)
SBI
Loss in Q4: 7718 crores
Provisioning in Q4: 28096 Cr.
Gross NPA in Q4: 2.02 lakh crores (10.91%)
Net NPA in Q4: 1.11 lakh crores (5.73%)
Canara Bank
Loss in Q4: 4860 crores
Provisioning in Q4: 9075 crores
Gross NPA in Q4: 40312 crores (11.84%)
Net NPA in Q4: 28542 crores (7.48%)
Bank of baroda
Profit in Q4: 56 percent fall to 112 million
Provisioning in Q4: 3436 crores
Gross NPA in Q4: 48000 Crores (11.31%)
Net NPA in Q4: 19852 crores (7.48%)
Allahabad Bank
Loss in Q4: 3509 crores
Provisioning in Q4: 5126 million
Gross NPA in Q4: 26563 crores (15.96%)
Net NPA in Q4: 12229 crores (8.04%)
OBC
Loss in Q4: 1650 crores
Provisioning in Q4: 2419 million
Gross NPA in Q4: 17.63%
Net NPA in Q4: 10.484%
On the path of distraction
on the way to overcome the problems of public sector banks. Bad loan problem of banks is in the past 10-15 years. But now the banks have begun to clean the book. Large NPAs have been identified, the survivors are also being identified. In the NCLT, the borrowing companies have been taken. Bankers who are trapped in the banker's process will come back to the bank accounts.
PSU banks are in the new mode of recovery of NPA, they will soon see the status of the revival. At present, there can be pressure on government banks for two quarters. But for a long period, Outlook is better and can be invested in Indian Bank, Bank of Baroda, SBI and PNB.
Hope to get back the loan
In this case, the case of 12 companies has been referred by the RBI to NCLT. It is expected that after the process of insolvency the banks will get back the loan repaid. He says that after the case resolution of Bhushan Steel and Electrosteel Steels Ltd, the balance sheet of PSU banks will be strong. For the long-term, investors have a better chance.
Strength in Balance Sheet
Rudra investment Free Share Market Tips expert, says that SBI will be the biggest beneficiary of Tata Steel's acquisition of Dushy Bhushan Steel. At the same time, 12 major borrowers of PSU banks whose accounts are 25 percent of the total NPAs have been taken to the RBI National Company Law Tribunal. Banks hope that when the process of bankers is processed then the bank's balance sheet will be strengthened.
Free Share Market Tips Experts say that the health of government banks is a big concern, for which the government and the RBI are working together. The problem of NPA in banks is not immediately, but the last 15 years. Recently some such cases have also come up with Nirav Modi. Banks have identified large NPAs. A large NPA account has been referred to NCLT. The case will be run under the IBC. There are also case resolutions like Bhushan Steel. As the cases come out, banks will be able to recover their money. At the same time, 2.11 lakh crore rupees are received by the government banks under the recapitalization plan which has already been started.
What is the situation of government banks
PNB
Loss in Q4: 13417 crores
Provisioning in Q4: 20350 crores
Gross NPA in Q4: 86620 Crores (18.38%)
Net NPA in Q4: 48684 crores (11.24%)
SBI
Loss in Q4: 7718 crores
Provisioning in Q4: 28096 Cr.
Gross NPA in Q4: 2.02 lakh crores (10.91%)
Net NPA in Q4: 1.11 lakh crores (5.73%)
Canara Bank
Loss in Q4: 4860 crores
Provisioning in Q4: 9075 crores
Gross NPA in Q4: 40312 crores (11.84%)
Net NPA in Q4: 28542 crores (7.48%)
Bank of baroda
Profit in Q4: 56 percent fall to 112 million
Provisioning in Q4: 3436 crores
Gross NPA in Q4: 48000 Crores (11.31%)
Net NPA in Q4: 19852 crores (7.48%)
Allahabad Bank
Loss in Q4: 3509 crores
Provisioning in Q4: 5126 million
Gross NPA in Q4: 26563 crores (15.96%)
Net NPA in Q4: 12229 crores (8.04%)
OBC
Loss in Q4: 1650 crores
Provisioning in Q4: 2419 million
Gross NPA in Q4: 17.63%
Net NPA in Q4: 10.484%
On the path of distraction
on the way to overcome the problems of public sector banks. Bad loan problem of banks is in the past 10-15 years. But now the banks have begun to clean the book. Large NPAs have been identified, the survivors are also being identified. In the NCLT, the borrowing companies have been taken. Bankers who are trapped in the banker's process will come back to the bank accounts.
PSU banks are in the new mode of recovery of NPA, they will soon see the status of the revival. At present, there can be pressure on government banks for two quarters. But for a long period, Outlook is better and can be invested in Indian Bank, Bank of Baroda, SBI and PNB.
Hope to get back the loan
Rudra investment Free Share Market Tips expert says soon. Because of the poor quality of asset quality and corporate governance issue, the PSU bank index is among the worst performers in the last financial year. But now most PSU banks, including SBI, have been able to identify their trapped debt.
In this case, the case of 12 companies has been referred by the RBI to NCLT. It is expected that after the process of insolvency the banks will get back the loan repaid. He says that after the case resolution of Bhushan Steel and Electrosteel Steels Ltd, the balance sheet of PSU banks will be strong. For the long-term, investors have a better chance.
Strength in Balance Sheet
Rudra investment Free Share Market Tips expert, says that SBI will be the biggest beneficiary of Tata Steel's acquisition of Dushy Bhushan Steel. At the same time, 12 major borrowers of PSU banks whose accounts are 25 percent of the total NPAs have been taken to the RBI National Company Law Tribunal. Banks hope that when the process of bankers is processed then the bank's balance sheet will be strengthened.
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