ICRA downgrades IDBI Banks various debt instruments
The Dollar Business Bureau Credit Rating agency ICRA has downgraded IDBI Bank’s various debt instruments, in the backdrop of weak financial results of the bank in the third quarter of the current fiscal. The October-December quarter result of the IDBI Bank has resulted in a considerable erosion of its common equity tier I (CET 1). In order to stay afloat, the Bank would need capital infusion of Rs.9500 – Rs.10,000 crore by the end of 2016-17. Last week, IDBI Bank’s board members held a meeting to consider a plan to sell its non-core assets to raise capital for the bank. Meanwhile, the government which owns 74% stake in the bank is expected to infuse about Rs.3000 crore. ICRA downgraded ratings for IDBI Bank’s Rs.25,742.72 crore ...
Govt sets parameters for PSBs to get 2nd round of funds
The Dollar Business Bureau The Government of India has fixed parameters for the public sector banks (PSBs) for getting financial support and those banks which fulfill the set criteria after third quarter results would only be eligible for receiving funds. “The Ministry of Finance has fixed some parameters for receiving financial support. Those banks that fulfill the given criteria after their third quarter results would be qualified for fund infusion,” according to sources. In July, the government had announced Rs.22,915 crore for the first tranche of capital infusion for 13 PSBs. “75 percent of the amount (Rs.22,915 crore)...is being released now to provide liquidity support for lending operations as also to enable banks to raise funds from the market," the Finance Ministry had said in ...
Andhra Bank raises Rs.1,900 cr via bonds in April-June quarter
Sharath Chowdary Andhra Bank has raised Rs.1,900 crore via bond issue during April-June quarter (Q1) of this financial year. The bank has raised Rs.900 crore through tier-I (AT-1) bonds that opened and closed for subscription on Friday, Andhra Bank Managing Director and CEO Suresh N Patel told The Dollar Business Bureau. The bank had earlier raised Rs.1,000 crore through tier-II bonds during the last quarter and planned to raise a capital of Rs.2,700 crore this year. “We may require Rs.400 crore from the Government of India and another Rs.400 from Secondary Public Offering in the current year,” Patel said after announcing the financial results of the bank for Q1 of FY 2017 in Hyderabad on Saturday. The bank has registered 85% decrease in net ...
FM assures of strengthening fragile public sector banks
The Dollar Business Bureau In a move supporting Indian banking sector, the Union Finance Minister Arun Jaitley on Wednesday assured of strengthening Public Sector Banks (PSB) and clearing worries over Non Performing Assets (NPAs). Stating that there was no ground to panic over NPAs, the finance minister said the government's first objective was to strengthen fragile public sector banks (PSBs). “Consolidation of weaker state-run banks with stronger ones will be the next step if some of the lenders continue to remain fragile, despite steps to strengthen them,” he said, speaking at Indian Summit 2015, organised by The Economist magazine in New Delhi on Wednesday. Jaitley also highlighted key measures to be taken by the government to strengthen PSBs, which include capital infusion and hiring of professionals ...
