Since 2013-14, the government and Life Insurance Corporation (LIC) have infused Rs three lakh crore in PSBs
even as their systemic importance continued to decline.
According to FDC, the most obvious lever telco PSBs
have to decrease the unbanked population is their large customer base; the telcos could use their existing financial technology (finTech) capabilities to increase the number of adults that are granted access to simplified, quality and affordable financial services.
At the same time, PSBs
have also made a record in recovery of Rs 60,726 crore in the first half of the current financial year, which is more than double the amount recovered in the corresponding period last year.
The former RBI governor also expressed concerns over uncompensated government mandates being imposed on PSBs
for a long time.
The expansion in PSBs
during FY2018 mainly came from all major sectors such as: Electricity, Gas and Water supply grew by (16.0 percent), Commerce and Trade (10.8 percent), Mining and Quarrying (10.2 percent), Manufacturing (9.0 percent) of which Textile (17.8 percent) and Transport, Storage and Communications (6.2 percent).
A credit rating agency official said, 'The RBI's announcement in February came after the government had already budgeted for capital infusion in PSBs
. The Government may, therefore, have to revisit the budgetary allocation for PSB
capital support for a possible enhancement.'
Kolkata-based UCO Bank is resting at the bottom of the pit in terms of capital levels among public sector banks (PSBs
As a result, the return on assets for PSBs
has turned negative during the quarter and the banks as a combined entity are in net loss.
As well as the obvious publicly funded PSBs
, it includes discussion of broadcasters from the community end of the spectrum, such as National Public Radio and Vocalo (a web-based initiative of Chicago Public Radio, part of the NPR network) in the United States, and--more problematically--Al-Jazeera English, although in this final case the author takes pains to justify his definition of AJE as a PSB
CRISIL believes that GoI's recent announcement to increase its stake in PSBs
to at least 58 per cent will materially strengthen the banks' capitalisation and will also enhance their flexibility to raise additional equity capital from the market.
The point of view that 'what's produced by licence fee money also belongs to the licence holders', has been put forward as an argument for free access to, and free use of, content from the PSBs