Non-banking financial companies (NBFCs) and housing finance companies' spreads are likely to compress by 50-75 basis points in this fiscal, says a report.
UCO Bank is mainly focussing on recovery in order to return to profit, its top officials said.
State-run lender Allahabad Bank is looking at a recovery of around Rs 5,500 crore in the current fiscal, an official said.
Acharya said initiatives like IBC and norms for prompt recognition of bad loans bode well for financial stability despite short-term pain.
With focus on recovery, Oriental Bank of Commerce (OBC) expects to post profit and also come out of prompt corrective action (PCA) framework of the RBI later this fiscal.
Finance Minister Piyush Goyal will meet heads of 13 public sectors banks (PSBs) tomorrow to resolve various issues concerning them.
More banks are unlikely to be brought under RBI's PCA as the situation pertaining to NPAs is expected to improve in next couple of quarters, a FinMin official said.
Bank of India has recovered Rs 7,000 cr worth Standby Letters of Credit in the last two months and the balance of Rs.2,000 crore would be recovered in another two months.
The Rs 11,400 crore fraud detected at PNB could trigger prompt corrective action (PCA) by Reserve Bank, leading to stoppage in lending by it for sometime, says a report.
Finance Minister Arun Jaitley said the government decision on privatisation of IDBI Bank stands and it will be implemented at the right time.