Recapitalisation of PSU banks by govt. will it work?

share ur views

 

If Indian economy is to revive, then PSBs can't be left out. Bigger banks will def be recapitalised by the govt so that they don't die. I am buying large PSBs whenever I get a dip. SBI, PNB, BoB and syndicate are for me.

 

i dont support spending more money on PSU banks further .
instead of spending more money into this inefficient banks i will say that 10-15 smaller banks should be merged to form 2-3 bigger banks which will improve efficiency and cut unnecessary competition and spending. and the money will be saved .

 

what you're saying is probably whats going to happen. All the bigger banks are going to be the mother ship in which the smaller ones are going to merge I think. Its happening with SBI, others should get merged with PNB, BoB I'd think, given their size.

 

I am holding SBI with the hope that they do something on NPA front. Recapitalization will help but only to some extent. It is more important to tackle NPAs. Anyways govt. is the promoter of these banks so now its up to the govt. to rescue them by any given means.

 

in merger no big cost included. the recap amount can be saved and used for infra related expense.

 

No ..... capital infusion again ...after that again NPA Problem .... Will full Defaults ....

Picture release in Dubbing language .... haa haa

solution : Hard parliament acts ....Hard punishments .. Defaulters all Assets sale and imprisonment life time

 

sir i also have same opinion . why waste tax money on these bad inefficient loser psu banks which are the biggest wealth destroyers for retail investors. lic is the only institution that will buy psu banks more.
when there is a better option of merging smaller banks to create 2-3 large banks and consolidate their positions why waste tax money for creating more npa s. there are 27 govt owned psb. why 27 bnks we require only 4-5. these banks have 27 chairmen. why not merge them and create better bigger banks

 

PSU banks have served a social purpose. Nobody can deny that. Even today many of them are the only source of banking for rural and poor population. But yes their functioning needs to improve. Unfortunately there is so much opposition to any productive reform that you can only wonder how they will end up like.

 

@w4wealth ,
for merger of all banks and make 4 or 5 is good thing and in those 5 banks competition between those banks to serve people is healthiest model ...but main hurdle is employees unions .... below 50 years employees think merger is good for them and computerization is needed they want to adopt new technology also ...above 50 years aged employees are refusing mergers because they dont want to adopt new systems and computer training all because they think their services are very short period why we have to take learning all these computer works and they are refusing ......

problem is with lake of Political will , Employees selfishness and with willful defaulters ......
solution is make Strong Act and punishments also very strong

 

The level of knowledge about banks - what ails them, how they ought to be run, how good mergers are, what enactments are required etc etc : simply amazing. This supposed banking expert keeps learning about banking/banks with every such post.

Gents, please keep the posts going.

 

ok darth ji ,
i am not a banking expert or in stock market expert also .... in my view if any person expert in stock market or banking he never come to this type of forums .... simple he is busy in his earnings ..... example Rakesh ji not opened his id in our forum yet , because he is more busy in his work that i know ....

 

Ooh dont misunderstand. The supposed banking expert is 'ME' not anybody else... Since thats how i am often referred to in here.

 

Yes but RJ has opportunity to share his views on the national media, print and electronic. The media automatically covers his investments. Poor investors like us do not have that opportunity so we use this forum. No harm in that I suppose.

 

yes you are correct , i know personally some big stock traders or HNIs , i requested several times that participate in forums , they will not accept that proposal because their starting days in trading they continue their research and participated in other stock market trading forums and search for good techniques and after that some time they share their views and strategies in those forums and some members try to demand and ridicule in that forums , and try to find weak points in those systems and they ask for holi grail and continuously commented those persons .... they think their research work limitation is may be 60 % or 65 % sucess .... but other members demand that your trade system is having this type of weak points why you have post this type of systems like that they commented .... they dont understand hard work behind to arrive that much level also ....
so those HNIs leave all forums and they trade or invest or his profits only

Rakesh ji also busy man and he only give some time to print media and some TV Channels for just share his opinions
they think is it necessary for me to participation in forums
If they participated in public forums they will face same situation ....

 

100% Agreed we are all novice here to learn from experts.