How the government's recent bank recapitalisation moves is unlikely to change the fortunes of PSU banks overnight.
Edited Highlights
1:25 This week the govt unleashed a whole set of stimulus measures. They trying to prop up the economy, banks , get the credit flowing and get the demand back
2:16 While the govt has tried to simplify GST, there will still be some issues in the near future, especially when the matching of invoices start in November and December
2:40 This will impact consumers, investors and companies in a month's time
3:05 The bank recap bonds is a very good move but they need to have something which is structural in nature
3:15 Banks will have more capital to lend but will it address all the problems of the banks
3:35 While in the short term this will help, this is not a panacea for all the ills of the banks despite the stock market rally of bank stocks
3:53 The problem with banks is that they don't understand which sector to lend at what point of time and at what stage of the economy
4:05 The same things has happened again and again and the government has consistently come with these financial re-engineering methods
4:13 So, the government's move will not solve the structural issues of banks
4:37 The recapitalisation process will not happen overnight. It will take time
4:44 This will slowly start impacting the earnings of banks
5:45 In case of PSU bank stocks, there is likely to be a move from under-ownership to over-ownership
