December 28, 2018 / 4:36 AM / 5 months ago

BUZZ-Capital infusion for Indian banks should broadly cover needs -Nomura

** Nomura says planned capital infusion into India’s state-run banks should broadly be enough to cover their capital needs

** India’s government is set to release 286.15 billion rupees ($4.08 bln) towards a fresh tranche of state-run bank recapitalisation, a finance ministry source told Reuters on Thursday

** This is part of a plan to inject a total of 2.11 trillion rupees into state-run lenders in a bid to tackle a record bad debt problem

** Latest tranche of infusion, according to reports, is largest for Bank Of India Ltd which could possibly get bank out of prompt corrective action (PCA) framework, Nomura notes

** India’s cenbank barred 11 state-run banks from lending under so-called PCA plan until they improve capital ratios, reduce bad debt and become profitable

** Continue to prefer corporate private banks like Axis Bank Ltd and ICICI Bank Ltd followed by state-owned State Bank of India Ltd - Nomura

** Axis and ICICI edged 0.96 and 1.36 pct higher, respectively, while state-run BOI and SBI gained 0.86 pct each

** United Bank of India Ltd, was among the largest gainers, surging as much as 14.3 pct on a 21.59 bln-rupee capital infusion ($1 = 70.0900 Indian rupees)

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