Indian banks will have to raise Rs 3 lakh crore in external capital

Indian banks will be required to raise Rs 3 lakh crore in external capital in the next four years, which was a huge challenge, a top bank official said."Indian banks will be required to raise Rs 3 trillion in external capital in next four years. Expansion of capital to this extent will affect the returns on the equity of these banks, especially public sector banks," Indian Overseas Bank DGM Vairam Somasundaram said at a seminar here."It will be difficult for the government to find such a large amount to capitalise the public sector banks. The...

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Public sector banks to sell Rs 2,000 crore of bad loans to asset reconstruction companies

A clutch of public sector banks, including the country's largest lender State Bank of India, is trying to sell about Rs 2,000 crore of bad loans to asset reconstruction companies, reflecting mounting pressure from stressed assets.People with knowledge of the matter said UCO Bank wants to offload Rs 1,000 crore of outstanding loans, while State Bank of Hyderabad has already called an auction for Rs 700 crore. Also on the list are Canara Bank and State Bank of India, though they are selling a smaller portfolio of sticky loans. This is the first...

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SKS Microfinance says Vikram Akula no more its promoter

SKS Microfinance said it will cease to treat a few entities, including Vikram Akula and Sequoia Capital India Growth Investments, as its promoters.Mauritius Unitus Corporation and Mutual Benefit Trusts are the other entities that have been removed from the promoters list." ... taking cognisance of their (entities) requests and instructions, the company shall cease to treat them as its promoters with immediate effect," SKS Microfinance, the only listed microfinance company, said in a filing to the BSE.The micro-lender said that Mauritius Unitus...

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