India looking for new management of the banking system
India is considering a proposal to create a holding company to manage its share of the 27 state-owned banks. This move could make it easier to attract capital to them in a time when banks in the country reported the lowest yield for the past nine years. “At a later stage we will decide”, said […]
India is considering a proposal to create a holding company to manage its share of the 27 state-owned banks. This move could make it easier to attract capital to them in a time when banks in the country reported the lowest yield for the past nine years.
“At a later stage we will decide”, said Finance Secretary Hasmuk Adhia told reporters in Pune, near Mumbai, where they held a two-day meeting where representatives of the government, regulators and banks discussed steps to improve the financial condition of banking institutions.
Leaders in the country met to discuss how to deal with declining profitability, bad loans and limited access to services in rural areas. When state-controlled lenders are more than 70% of the outstanding loans in India at the moment. Improving the financial sector can help the Prime Minister of India Narendra Modi in its efforts to stimulate the economy after winning elections in May. Index S&P / BSE Bankex, which tracks 12 lenders in the country rose by 65% last year amid optimism about economic recovery.
