Page 10 - Banks

Legacy issues behind us, PNB is charting a new growth path: Ashok Chandra

Leaving legacy issues behind, Punjab National Bank (PNB) has embarked on a new growth path with a distinct focus on operating profit to outdo competition in the current fiscal and subsequent years, its managing director Ashok Chandra has said. Reduction in NPAs, low-cost deposit mobilisation, increasing avenues for fee income enhancement and recovery from bad loans are other priority areas of the bank, which have been showing good improvement in various parameters, including net profit. For the financial year ended March 2025, PNB has emerged as the top bank in terms of profit growth among 12 public sector banks (PSBs) with a 102 per cent rise. The bank's net profit doubled to Rs 16,630 crore compared to Rs 8,245 crore in the previous fiscal. The bank has reported a 14 per cent rise in total business at Rs 26.83 lakh crore in FY25, one of the highest in the banking system. Pointing out that the bank had a lot of legacy issues, including one of the highest gross and net non-performi

SBI, PNB say ATMs stocked, services smooth amid India-Pakistan tensions

State Bank of India, Punjab National Bank and several other lenders on Friday said their ATMs are fully functional, well-stocked, and that digital services are operating smoothly. The announcements came against the backdrop of reports on social media that ATMs are likely to be shut in the coming days amid escalating tensions between India and Pakistan. They also said that all their digital services are operating smoothly. "All our ATMs, CDMs/ADWMs and digital services are fully operational and available for public use," India's largest bank, State Bank of India, said in a post on social media post 'X'. India's largest lender also advised its customers not to rely on unverified information. Similar messages have been posted by Bank of Baroda, Punjab and Sindh Bank, Canara Bank and Bank of India. "All our digital services too are operating smoothly, ensuring a seamless banking experience from the comfort of your home," Punjab National Bank said in a post on social media platform ..

BFSI's risk index rise amid global economic stability, says CIRI report

BFSI sector's risk index rose amid inflation and geopolitical tensions even as risk mitigation efforts like digitisation and AI adoption supported operational resilience

BSE issues cyber risk advisory to market participants amid rising threats

To avoid potential cyber attacks, the BSE and NSE also took precautionary measures by blocking their websites for international users, sources told news agency

Mock drills across India on May 7: Will banks, schools remain open?

Mock drills in India: Will banks and schools stay open or face disruptions on May 7 for civil defence mock drills?

Union Bank of India admits to lapses in procuring Subramanian's book

Union Bank of India has acknowledged lapses in procuring India@100 by K V Subramanian, prompting an internal probe, though it says no material financial impact has emerged

Banks remain cautious in lending to NBFCs despite risk weight reversal

Despite RBI's decision to revert risk weights on NBFC loans from April 1, banks continue to exercise caution, limiting credit access to mid-sized NBFCs and MFIs

Will ensure RoA over 1% in FY26 despite margin pressure: SBI Chairman

The State Bank of India (SBI) will ensure return on assets (RoA) of over 1 per cent during the current financial year despite the challenge of declining rate cycle, the bank's Chairman C S Setty said. RoA is a profitability ratio that shows how much profit a company would generate from its assets. There would be further repo rate cuts during the year that would put pressure on net interest margin, he said, adding that there would be realignment of rates on the deposit side because without that effective monetary transmission will not happen. "We will ensure that the readjustment of interest rates on the deposits are aligned broadly with repo rate cuts so that margins are protected," he said while addressing analysts after announcing the SBI's quarterly numbers. "We still will be able to maintain 1 per cent RoA guidance for the current financial year... our goal is to consistently achieve an RoE of over 15 per cent through the business cycles," he said. RoA of the bank improved fro

Too many episodes of financial mismanagement: Where does the buck stop?

Should the resignation of senior bankers on moral grounds draw the curtains on mismanagement and accounting discrepancies?

Non-food bank credit growth decelerates to 12% in March 2025, says RBI

The data released by RBI, compiled from 41 select scheduled commercial banks (SCBs) that account for nearly 95 per cent of total non-food credit, highlights notable trends across key economic sector

RBI rate cuts to impact key profitability indicator of banks: Crisil

The Reserve Bank's rate cuts will lead to an up to 0.20 per cent slip in return on assets, a key profitability indicator, for banks in FY26, a domestic rating agency said on Wednesday. Crisil Ratings said the RoA will contract by 0.10-0.20 per cent to 1.1-1.2 per cent in FY26 from an over-two-decade high of 1.3 per cent in FY25. Compression in the net interest margin by a similar level will be the key driver for the slip in RoA, the agency said, explaining that in a falling interest environment, interest rates on loans are expected to reduce faster than those on deposits. "Of the loan assets, 45 per cent are linked to an external benchmark, primarily repo. Typically, these are repriced rapidly after rate cuts. On the other hand, any reduction in term deposit (TD) rates will apply only to incremental deposits and renewals, resulting in a slower transmission of the reduction to the liability side," its director Subha Sri Narayanan said. Apart from NIMs, the agency said, credit costs

IndusInd Bank MD and CEO Sumant Kathpalia resigns with immediate effect

Bank seeks RBI nod for panel to discharge CEO duties

Sumant Kathpalia resigns as IndusInd Bank CEO with immediate effect

This comes after Arun Khurana, Deputy Chief Executive Officer of IndusInd Bank, filed his resignation from the bank yesterday

Bank holidays in May 2025: 12-day state-wise schedule and key dates

In May 2025, banks are scheduled to remain shut for 12 days due to state-wise regional and national holidays. Check complete list here

Adani Airport unit seeks $750 million loan from international banks

Adani Airport Holdings Ltd. manages seven major airports across India and is nearing the launch of a new $2 billion international hub on the outskirts of Mumbai

High SDF balances signal asymmetric liquidity conditions: RBI Bulletin

RBI report highlights precautionary cash hoarding and uneven fund distribution in banking system

Large banks to benefit from RBI's runoff factor move, say analysts

The new norms have allowed lowering the runoff factor on deposits from non-financial entities such as trusts to 40 per cent from 100 per cent

PSU banks lead incremental credit while share of private banks falls

Although non-food credit increased at a decelerating pace of 12 per cent year-on-year (Y-o-Y), compared to 16.3 per cent a year ago, according to the bulletin

RBI permits minors above 10 yrs to operate bank accounts independently

The Reserve Bank on Monday permitted banks to allow minors above the age of 10 years to open and operate savings/ term deposit accounts independently. The Reserve Bank of India has issued revised instructions on opening and operation in the deposit accounts of minors. Minors of any age may be allowed to open and operate savings and term deposit accounts through his/ her natural or legal guardian, the RBI said in a circular addressed to commercial banks and cooperative banks. They may also be allowed to open such accounts with their mother as guardian. "Minors above such an age limit not less than 10 years and up to such amount and such terms as may be fixed by the banks keeping in view their risk management policy, may be allowed to open and operate savings/ term deposit accounts independently, if they so desire, and such terms shall be duly conveyed to the account holder," the circular said. Further, on attaining the age of majority, fresh operating instructions and specimen ...

New India Co-operative Bank case: Depositors push for revival or merger

Depositors of scam-hit New India Co-operative Bank met RBI-appointed advisors and senior officials of the apex bank, demanding a concrete roadmap for the bank's revival or merger and better protection for depositors' interests, as per a release. The NICB Depositors' Foundation is demanding urgent measures to restore depositor confidence and alleviate the financial strain faced by thousands of account holders since RBI imposed restrictions on February 13, 2025. Mumbai Police has so far arrested eight persons in connection with the Rs 122 crore New India Cooperative Bank embezzlement case. The foundation president TN Raghunatha said a delegation of depositors met RBI-appointed advisors Ravindra Chavan and Ravindra Sapra at the bank's corporate office in Prabhadevi on Friday. During the discussion, the advisors offered a cautiously optimistic outlook on the bank's future, Raghunatha stated. "The advisors were positive about the prospects of reviving the bank. They confirmed that mult