The stocks, particularly of the larger banks, can easily move up by another 30-40 percent, taking their market capitalisation higher
GN Bureau | October 31, 2017
If the change of perception for PSU banks, post the mega capital infusion scheme is any indication, dilution of government equity up to 52 percent in the state-owned lenders can fetch valuation much higher than the estimated potential of Rs 58,000 crore as provided in the Rs 211,000 crore re-capitalisation plan, said an Assocham report.
“As PSU banks have been given over-weightage following the government announcement of capital infusion, their valuations have already gone up between 20-30 percent in the first few days, even before unveiling of details of the recapitalisation bonds and the reform roadmap.
“As the details emerge in the coming few weeks and months, these stocks, particularly of the larger banks can easily move up by another 30-40 percent, taking their market capitalisation commensurately high. This would surely mean, that if the banks are able to encash the sweet spot, they can easily raise much more than Rs 58,000 crore,” said the report.
The government holding in several banks is still well above the 52 percent mark, which had been decided to be maintained. “It is a different matter that the money so raised by government dilution would accrue to the banks and not the exchequer. All the same, all this financial revamp would ultimately lead to a huge benefit to the government itself, in terms of higher market capitalisation. After all, the largest shareholder would still be the Government of India," said Assocham secretary general DS Rawat.
Besides, the chamber report said that once the uptick in lending resumes, there would be consequent advantages by way of higher economic growth and tax buoyancy.
After his much-appreciated debut in Meri Jung in 1985, Javed Jaffrey inspired a new generation of dancers. He then turned from dance to comedy. The versatile actor constantly changes his styles and his live, film, TV and radio appearances always promise novelty and surprise. In 2014 he joined the Aam A
Yes, we must stand rock solid with the judiciary and the judges. We must protect the independence of the judiciary too. What does this mean in the present context of a very serious charge of sexual harassment levelled by a former employee of the court against the CJI? We are told that there is a larg
The Centre for Railway Information Systems (CRIS) is a society set up by the railways ministry in July 1986 to provide IT related services to the Indian Railways. CRIS deals in a gamut of functions, like passenger ticketing, freight operations, train dispatching and control, crew management, e-procurement,
What are 600 million people? Almost twice the population of the US. What are 500 million people? About three-fourth of the population of Europe. Why are we talking about these numbers? Well, because as per a study by Sandhya Krishnan and Neeraj Hatekar (‘Rise of New Middle Class in India and Its
Abright yellow van with figures of children playing with a whirligig, a Newton’s cradle, a magnetic compass rolls into the Government Higher Primary School in Kittaganahalli, on the outskirts of Bengaluru. Students in the playground leave what they are doing and mill about it in excitement. For they
Not many children dream of starting an idyllic school of their own when they grow up. But Ramji Raghavan, founder of the Agastya International Foundation – which fosters the creative learning of science in stude