Economy & Banking Current Affairs

Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.

Kavery Kalanithi of Sun Tv – India’s top paid Business woman

imageAs per Fortune Magazine, Ms Kavery Kalanithi of Sun TV group has retained her position as the India’s top paid business woman in 2012.

Pay packages of Top 4 Business women in India:

  1. Kavery Kalanithi, Executive Director, Sun TV Group: Rs 57 Crore
  2. Urvi A. Piramal, Chairperson, Peninsula Land: Rs 7.3 Crore
  3. Preetha Reddy, MD, Apollo Hospital Enterprises: Rs 6.9 Crore
  4. Vinita Singhania, MD, JK Lakshmi Cement: Rs 5.9 Crore

PSBs’ profits would have been wiped out were they asked to maintain 70% PCR

Thanks to RBI, which had withdrawn the requirement for 70% loan loss cover from September 2011. Else, Public sector banks, which have decreased their PCR (Provision Coverage Ratio) in the last one year, would have seen their quarterly profits wiped out, were they asked to maintain PCR of 70%.

  • It is interesting to note that although, RBI had withdrawn the requirement for 70% loan loss cover from September 2011, private sector banks, whose asset quality is better than their public sector counterparts’, have maintained provision covers of more than 70%.
  • Except a few exceptions, majority of PSBs (Public Sector Banks) have reported a sequential decrease in their PCR, while private sector banks have performed better.

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Source: Business Standard

Clearly from the table, we can see that SBI’s quarterly Net Profit was 3,658.14 Crores and its PCR was 62.80% and in case it was to maintain PCR of 70%, SBI would have almost wiped out its quarterly profit.

Now, if we analyze the case of Indian Overseas Bank, it has a quarterly net profit of Rs 158.43 Crores. Were it asked to maintain PCR of 70%, then Indian Overseas Bank would have needed 680 Crores i.e. 4.3 times more than its net profit.

The country’s top private sector banks ICICI Bank and HDFC Bank had a PCR of 78.7% and 82%, respectively, at the end of the September quarter.

What is Provision Coverage Ratio (PCR) ?