Banks the naked truth

Rising bad assets are to blame for the dismal results announced by three large PSU banks on Tuesday. Bank of India fared worse. All three banks have recorded a substantial rise in their bad assets from the year-ago period and their earnings are below the consensus estimates of analysts. The villain of the piece obviously is rising bad assets for which they had to set aside money, denting their profits.
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The naked truth about Indian banks

B etween July and October , the yield on the most traded year government security - a barometer for domestic interest rates - crashed by over eight percentage points from 13 to 4. The banking community watched this with glee, chased government securities with fat money bags and made huge profits on bond portfolios. That was the first act in the Indian banking sector's turnaround drama. What we are witnessing now is the second act. Rates have started firming up. Since the beginning of , the yield on year gilts has increased by around 1.
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The naked truth about PSU banks

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