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Mega Mergers Fail to Lure Funds to India’s State-Run Bank Stocks

  • State-run banks have large asset-quality issue: JPMorgan Chase
  • Private banks’ shares better than state-run lenders: Aberdeen
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India’s biggest bank overhaul in decades to merge state-run lenders beset with bad loans and low capital hasn’t convinced investors to increase holdings of the shares.

Fund managers including Aberdeen Standard Investments Ltd. and JPMorgan Chase & Co. are shying away from increasing their positions in government-owned lenders. As well as poor asset quality at the banks, they cited uncertainty about the mergers’ time-line.