Banks are cashing out of their subsidiaries and non-core assets to shore up their capital base, and the trend will continue this year. At a time when non-performing assets (NPAs) have risen to nearly Rs 9 trillion for 34 listed banks that have announced their results so far, and provisioning against them is eating into capital, banks do not have much option other than unlocking value in their subsidiaries.
Either banks are raising funds by divesting their stakes in subsidiaries through offers for sale, or there is outright stake sale. In the banks’ profit and loss ...
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST Rs
Key stories on business-standard.com are available to premium subscribers only.
Already a premium subscriber? LOGIN NOW
First Published: Sun, May 27 2018. 21:31 IST
