1. 20
Indian Banking Industry
Private Banks
B2B B2C
Public Banks
FY 20 – NPA & Credit Crunch
Credit Lending
Crunch
=
Fear of 3C’s
CBI, CAG, CVC
+
Higher Costs
+
Poor Biz Env
+
Low Confidence
Rising NPA
=
Biz. Env
+
Political
Intervention
& Apptmt.
+
Legacy
Regulation
NBFCS
(not in scope)
NPA Growth 2 - 4% NPA Growth > 10%
YES Bank
P
U
Consolidating PSU
Banks with
Mergers
Remedial Ask
• Improve business improvement
• Govt cant run banks, they need to be independent and run autonomously
• Let auditors govern them
• Remove too many gate keepers like 3C’s - CBI, CVC, CAG, fear to be
removed
• Aggressive cost restructure is required, slack has to be removed
• VRS is required like BSNL, MTNL
Source: LiveMint, Bloomberg, ThePrint, ET
Non Performing
Assets (NPA)Market Cap.
Market Cap. except
few like SBI, PNB