Budget 2022 | Union Bank of India, Bank of Baroda, Bank of Maharashtra and Indian Overseas Bank shed 1.5-5.5 percent each
Budget 2022
The PSU Bank index underperformed the market, down over a percent as Finance Minister Nirmala Sitharaman in her Budget speech on February 1 Budget 2022 | No proposal for fresh capital infusion into PSU banks this year”>didn’t set aside money for public sector banks (PSBs) nor did she offer clarity on the roadmap for privatisation.
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In Budget 2021, she had announced a Rs 20,000-crore capital infusion for PSBs. The state-run banks account for 60 percent of assets in the Indian banking system 90 percent of the stressed assets.
The Nifty PSU Bank was down over a percent, dragged by Union Bank of India, Bank of Baroda, Bank of Maharashtra and Indian Overseas Bank, which shed 1.5-5.5 percent each. The share price of State Bank of India along with Punjab National Bank and Canara Bank was down over a percent each.
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Scheduled commercial banks’ (SCB) gross non-performing assets (GNPAs) declined from 8.2 percent at end-March 2020 to 7.3 percent at end-March 2021 and further to 6.9 percent at end-September 2021, the RBI has said in its report on Trend and Progress of Banking in India 2020-21 released on December 28.
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