Page 5 - Psu Banks

Public sector banks' total profit crosses Rs 1 trn-mark in 2022-23

Public sector banks' cumulative profit crossed the Rs 1 lakh crore-mark in the financial year ended March 2023, with market leader State Bank of India (SBI) accounting for nearly half of the total earnings. From posting a total net loss of Rs 85,390 crore in 2017-18, the Public Sector Banks (PSBs) have come a long way as their profit touched Rs 1,04,649 crore in 2022-23, according to an analysis of their financial results. These 12 PSBs witnessed 57 per cent increase in total profit compared to Rs 66,539.98 crore earned in 2021-22. In percentage terms Pune-based Bank of Maharashtra (BoM) had the highest net profit growth with 126 per cent to Rs 2,602 crore, followed by UCO with 100 per cent rise to Rs 1,862 crore and Bank of Baroda with 94 per cent increase to Rs 14,110 crore. However, in absolute term, SBI has reported an annual profit of Rs 50,232 crore in 2022-23, showing an increase of 59 per cent over the preceding financial year. Except for the Punjab National Bank (PNB), ot

FinMin wants PSBs to enhance recovery rate from written-off accounts to 40%

Worried over the low recovery rate from written-off accounts, the Finance Ministry has asked state-owned lenders to increase it to about 40 per cent, sources said. Currently, the recovery rate from written-off accounts is less than 15 per cent. Public sector banks (PSBs) could recover only 14 per cent of the written-off loans worth Rs 7.34 lakh crore in the last five years ended March 2022. Of Rs 7.34 lakh crore written-off loans, state-owned lenders recovered Rs 1.03 lakh crore. So after recovery, the net written-off stood at Rs 6.31 lakh crore at the end of March 2022. It seems that after the write off banks get complacent about recovery from those non-performing assets (NPAs), the sources said, adding, this level of recovery is not acceptable. Besides, they said, higher recovery from written-off accounts directly adds to their bottomline and improves their capital. To review the situation on the issue, the sources said, the Department of Financial Services would soon hold a mee

A week in a PSU banker's life

Pages from the diary of a banker that offer glimpses of his work and life

Bank of Maharashtra reports more than double profit to Rs 840 cr in Q4

State-owned Bank of Maharashtra (BoM) on Monday reported a more than two-fold jump in its net profit to Rs 840 crore for the March quarter, helped by a decline in bad loans and a rise in interest income. The bank had earned a net profit of Rs 355 crore in the year-ago period. During the quarter, the bank's total income increased to Rs 5,317 crore as against Rs 3,949 crore a year ago, BoM said in a regulatory filing. Interest income grew to Rs 4,495 crore during the period under review, from Rs 3,426 crore in the corresponding quarter a year ago. The bank's board has recommended a dividend of Rs 1.30 per share or 13 per cent of Rs 10 face value out of the net profits for the year ended March 31, 2023. Gross Non-Performing Assets (NPAs) were reduced to 2.47 per cent of gross advances as of March 31, 2023 from 3.94 per cent by the end of March 2022. Net NPAs also came down to 0.25 per cent of the advances from 0.97 per cent at the end of 2022. The fall in bad loans ratio helped cut

MFs book profits in PSU banks, sell stocks worth Rs 1,800 cr in Q4

Potential in state-owned lenders could be limited in the near-term as most positives are priced in

PSU banks rally; Punjab & Sind, Uco Bank, Indian Bank surge up to 12%

At 02:23 pm, Nifty PSU Bank index, the top gainer among sectoral indices, was up 2.5 per cent

Rate sensitive shares gain up to 3% as RBI keeps repo rate unchanged

SBI, Indian Bank, UCO Bank, Bank of Maharashtra, Punjab & Sind Bank, Canara Bank and Punjab National Bank from the PSU banks were up in the range of 1 - 3 per cent.

Valuation comfort remains with PSU banks despite sharp gains

The entire sector has beaten the Nifty (up 6 per cent in the same period) comfortably - the Bank Nifty, which includes both private and PSU banks, is up 16.6 per cent

Budget 2023: Govt expects Rs 48,000-cr dividend from RBI, PSU banks in FY24

The government expects 17 per cent higher dividend at Rs 48,000 crore from the Reserve Bank of India (RBI), public sector banks and financial institutions in 2023-24. In current financial year ending March, it aims to garner Rs 40,953 crore from RBI and public sector financial institutions. This is much lower compared to Budget Estimate of Rs 73,948 crore for FY23. It is to be noted that RBI approved a dividend payment of Rs 30,307 crore to the government post its board meeting in May 2022. As per the Budget document, dividends from public sector enterprises and other investments have been pegged at Rs 43,000 crore for FY24 as well. As per the Revised Estimate for FY23, the dividend from public sector enterprises and other investments was higher at Rs 43,000 crore from the Budget Estimate of Rs 40,000 crore. Total dividend collection of the next financial year would be Rs 1,15,820 crore as against the RE of Rs 1,08,592 crore, as per the RE of 2022-23.

Rout in Adani Group stocks triggers panic sell-off in PSU banks

A Bloomberg report said that Credit Suisse Group AG has stopped accepting bonds of Gautam Adani's group of companies as collateral for margin loans

TMS Ep357: Maruti Suzuki EV, bank workweek, Adani stocks, lab-grown meat

What made Maruti Suzuki join the EV party? Is it time for banks to have a five-day workweek? Will Adani Group stocks see more sell-off? What is lab-grown meat? All answers here

Nifty PSU Bank index tumbles over 5%; IOB, UCO, Central Bank tank 10%

With today's fall, the Nifty PSU Bank index has corrected 15 per cent from its 52-week high level of 4,617.40 touched on December 15

Rupee marginally lower against dollar, PSU banks help limit losses: Report

The rupee was quoting at 82.8375 per dollar by 10:20 am IST, compared with 82.76 in the previous session

Rally in PSU banks to sustain on higher margins, loan surge: Morgan Stanley

Brokerage raises price targets for non-SBI state-owned banks

PSU banks trade firm in a weak market; SBI nears record high

Recently, SBI raised Rs 10,000 crore through its maiden issue of infrastructure bonds, for funding infrastructure and affordable housing segment.

Rally in PSU banks set to continue; biz prospects may improve further in H2

There's been credit expansion and credit costs have remained low, due to general economic growth and low non-performing assets (NPAs)

Congress slams govt over rise in NPAs, questions 'unbridled powers' to PSBs

The Congress on Tuesday alleged that NPAs have risen by 365 percent under the Modi government and questioned why "unbridled powers" were being given to PSU banks to "sell off assets at throwaway prices". Congress spokesperson Supriya Shrinate said 38 wilful defaulters have fled the country after swindling banks and asked the government on its plans to bring them back. She claimed that the BJP does not contest elections on issues or its report card but on the face of the prime minister, and said it must answer questions on the rise in non performing assets (NPAs) and loans being written off. "The BJP or the prime minister never contests polls on issues and seeks votes on its report card as they never work. Every election is being contested on the personal background of the prime minister. But, who will answer as to why big haircuts are being given by banks," she told reporters at a press conference. The Congress leader said 61 percent of the fiscal deficit can be funded by this writ

PSU Bank index soars 73% from June lows; UCO, BOI, Canara zoom up to 102%

In the past one month, the Nifty PSU Bank index has rallied 31 per cent as compared to a 2.8 per cent rise in the Nifty 50 index

Govt raises maximum tenure of PSU banks' CEOs to 10 years to retain talent

As per a government notification dated November 17, 2022, the term for the appointment has been extended to 10 years, from the earlier 5 years, subject to superannuation age of 60 years

Investors pull out big money from debt funds despite attractive yields

Fund managers and MF distributors expect net inflows to turn positive after completion of rate hike cycle