PSU Banks to Take Rs 2,000 Crore Hit on SC Interest Order

  • Investing.com
  • Stock Market News
PSU Banks to Take Rs 2,000 Crore Hit on SC Interest Order
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- A PTI (Press Trust of India) report has said that PSU (public sector unit) banks will have to bear a burden of Rs 1,800 crore to Rs 2,000 crore that might arise on the back of an SC (Supreme Court) judgment.

The SC had said that compound interest or interest on interest had to be waived for all loan accounts that opted for the moratorium between March-August 2020. Any amount that was already charged would have to be refunded, credited, or adjusted to the customer.

The report said, “According to banking sources, initially 60% of borrowers availed moratorium and gradually the percentage came down to 40% and even less as collection improved with ease in lockdown. In case of corporate, this was as low as 25% as far as public sector banks were concerned.”

The IBA (Indian Banks Association) has written to the government to compensate lenders for this loss in income. The government has said it will take a call after considering various factors.

The Nifty PSU Bank is trading down 4.54% as of this report. Canara Bank Ltd (NS: CNBK ) is down 6.59%, State Bank Of India (NS: SBI ) and Indian Overseas Bank (NS: IOBK ) are both down over 4.7% each.

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search
  • PROF MADHESWARAN @PROF MADHESWARAN
    good decision
    Like 0
  • Sameer Kapoor @Sameer Kapoor
    bc
    Like 0
  • Rakesh Prasad @Rakesh Prasad
    Bank is soft target of govt.
    Like 0
  • Balram Kashyap @Balram Kashyap
    Time to short all the PSU banks
    Like 1
    • Abhishek Mahla @Abhishek Mahla
      Karke dekhlo fir 😂
      Like 0

      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
      • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
      • Be respectful. Even negative opinions can be framed positively and diplomatically.
      •  Use standard writing style. Include punctuation and upper and lower cases.
      • NOTE: Spam and/or promotional messages and links within a comment will be removed
      • Avoid profanity, slander or personal attacks directed at an author or another user.
      • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
      • Only English comments will be allowed.

      Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

      Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100
      Please try another search

Related Articles