Public Sector Banks Psbs

Govt to divest up to 6% stake in Bank of Maharashtra, eyes ₹2,600 cr

The government has decided to divest up to 6 per cent stake in state-owned Bank of Maharashtra through an Offer for Sale commencing on Tuesday. At the current market price, the government would be able to garner about Rs 2,600 crore by offloading up to 6 per cent stake in the bank. "Offer for Sale in Bank of Maharashtra (BOM) opens tomorrow for Non-Retail investors. Retail investors can bid on Wednesday. Government offers to disinvest 5% equity in the bank with an additional 1% as a green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X. The government currently holds a 79.60 per cent stake in the Pune-based bank. With the stake dilution, the bank would be able to meet the minimum public shareholding norm of 25 per cent as the government stake will come down below 75 per cent. This is in line with the Securities Contract (Regulation) Rules issued by the Securities and Exchange Board of India, which mandate that

FinMin to meet PSB chiefs to review Q2 results, govt schemes' progress

The finance ministry has called a meeting of heads of public sector banks (PSBs) on Wednesday to review the second-quarter and half yearly financial performance. The meeting is scheduled to be chaired by Financial Services Secretary M Nagaraju. This is the first meeting after Finance Minister Nirmala Sitharaman last week said the country needs big and world-class banks, and discussions are on with the Reserve Bank and lenders in this regard. "Government is looking at this and work has already commenced. We are discussing with the RBI. We are discussing with banks," she had said. The review meeting on November 12 with public sector banks will also deliberate on progress made on flagship schemes of the government besides their financial numbers, sources said. Public sector banks posted a record cumulative profit of Rs 49,456 crore in the second quarter of the current fiscal, reflecting a 9 per cent year-on-year growth despite two lenders reporting a decline. All 12 public sector ba

Govt keen to retain its say on picking PSB independent directors

During the PSB Manthan earlier this month, some experts and bankers had suggested that the power to appoint independent directors should rest with the boards of PSBs to enhance accountability

Motilal Oswal sees re-rating potential for PSU banks; SBI, PNB top bets

Despite a nearly 5x jump in aggregate mcap since FY20, most coverage PSBs still trade at reasonable valuations of 0.8-1x forward P/B & 5-7x FY27E EPS, leaving room for further upside.

Public sector banks lose big as pension fund deposits plunge 87% in 5 years

Public sector banks see sharp erosion in pension fund and household deposits, while private banks capture larger shares amid rising demand for returns and convenience

FinMin reviews Q1 performance of PSBs, urges higher lending to economy

The finance ministry on Wednesday held a meeting of heads of public sector banks (PSBs) to review their first-quarter financial performance. The three-hour-long meeting was chaired by Financial Services Secretary M Nagaraju. During the meeting, the secretary urged the MDs and CEOs of state-owned banks to increase lending towards the productive sector of the economy, according to sources. The review meeting with public sector banks assessed the performance of the first quarter of 2025-26. Led by State Bank of India (SBI), public sector banks, cumulatively, logged a record profit of Rs 44,218 crore in the first quarter of the current fiscal, with an 11 per cent year-on-year growth. All 12 public sector banks together made a profit of Rs 39,974 crore in the June quarter of FY25. The increase in profit in absolute terms was Rs 4,244 crore. Market leader SBI alone contributed 43 per cent to the total earnings of Rs 44,218 crore, as per the published numbers on stock exchanges. SBI lo

SBI Q1 beat spurs brokerages' bullish calls; check stock outlook here

On the bourses, SBI share price rose as much as 1.76 per cent to an intraday high of ₹818.75 per share.

Public sector banks to hire about 50,000 manpower in current financial year

Public sector banks will recruit about 50,000 manpower during the ongoing financial year to meet their growing business requirement and expansion. Of the total fresh recruitment, about 21,000 would be officers and remaining would be staff including clerks, as per data collated from various banks. Of the 12 public sector banks, the biggest player State Bank of India (SBI) is going to employ close to 20,000 including specialised officers in the financial year. Initiating the process, SBI has already hired 505 Probationary Officers (POs) and 13,455 junior associates to enhance customer experience at its branches across the country. The recruitment of 13,455 junior associates is aimed to fill vacancies across 35 states and Union Territories. The total staff strength of SBI stood at 2,36,226 as of March 2025. Of this, 1,15,066 officers were on the rolls of the bank at the end of last fiscal. Average hiring cost per full-time employee for 2024-25 was Rs 40,440.59. SBI has a consistent

FinMin pushes PSBs to expand branches amid private sector competition

Amid rising competition from private and small finance banks, PSBs have been asked to scale up physical infrastructure and cover over 200 unbanked population clusters

Finmin asks PSBs to monetise subsidiary stakes via listing on bourses

The finance ministry has asked public sector banks (PSBs) to look at monetising their investment in subsidiaries by listing them at bourses after further scaling up operations so that they realise good return. There are about 15 subsidiaries or joint ventures of PSBs lined up for initial public offering or divestment in medium to long term, sources said. Wherever required banks should invest funds to scale up operations of their subsidiaries or joint ventures, sources said, adding, banks can look at unlocking value at an opportune time. As a precursor to monetisation, sources said, banks should improve governance, professional decision-making and bring in greater operational efficiency in their subsidiaries. For example, the country's biggest lender State Bank of India may look at listing SBI General Insurance and SBI Payment Services in the future after they scale up their operations. SBI General Insurance Company Ltd, incorporated on February 24, 2009, earned a profit of Rs 509

State-owned banks' credit share continues downward trend, albeit slower

PSBs' credit share fell by 4 per cent from FY21 to FY25, a slower rate of decline than the approximately 20 per cent between FY11 and FY21

FinMin sets Rs 17.31 trillion MSME lending target for PSBs in FY26

MSME lending target for PSBs raised 19.5%

State Bank of India withdraws special fixed deposit scheme Amrit Kalash

Other banks, including HDFC Bank and Yes Bank, have also trimmed interest rates on fixed deposits for select tenures

Lenders to Go First to auction land parcels in March for recovery

About 94.7 acres on block; reserve price set at Rs 1,782 crore

GNPA of PSBs declines to 3.12% in Sep from 14.58% in March 2018: FinMin

Gross non-performing assets (NPAs) of public sector banks (PSBs) have declined to a decade low of 3.12 per cent at the end of September 2024 from a peak of 14.98 per cent in March 2018 on the back of measures like the 4Rs -- recognition, recapitalisation, resolution, and reform -- taken by the government, the finance ministry said on Thursday. Since 2015, the government implemented a comprehensive 4Rs strategy of recognising NPAs transparently, resolution and recovery, recapitalising PSBs, and reforms in the financial system to address the challenges faced by PSBs, it said. Capital adequacy ratio of PSBs improved 393 bps to reach 15.43 per cent in September 2024 from 11.45 per cent in March 2015, it said. During 2023-24, PSBs recorded the highest-ever aggregate net profit of Rs 1.41 lakh crore against Rs 1.05 lakh crore in 2022-23, it said, adding that the figure was Rs 0.86 lakh crore in the first half of 2024-25. In the last three years, PSBs have paid total dividend of Rs 61,964

SBI is Nomura's top pick, says PSB well set to deliver on asset quality

Nomura has reaffirmed its 'Buy' rating for SBI, maintaining a target price of Rs 980. This target suggests a potential upside of approximately 25per cent from the previous closing price of Rs 781.

State-owned banks on apprenticeship spree to strengthen customer services

Banks are hiring apprentices for the first time amid gradual decline in number of employees

FM Sitharaman meets heads of PSBs, exhorts banks to improve deposit growth

Finance Minister Nirmala Sitharman on Monday held a performance review meeting with heads of public sector banks and urged them to improve their deposit growth. Deposits have been growing 300-400 basis points lower than the credit growth in the last few months, creating an asset-liability mismatch for banks. According to sources, the finance minister reviewed the financial performance of banks and progress made in the implementation of various flagship schemes of the government, including PM Awas Yojana, PM Surya Ghar and PM Vishwakarma Yojana. Sitharman also took stock of deposit growth, credit-to-deposit ratio (CD ratio) and asset quality, sources said. The minister asked the banks' chief to focus on core banking business and increase the pace of deposit growth by introducing innovative products. Earlier this month, the finance minister had said there is a mismatch between deposit and lending growth. "Growth in lending is higher...I will be meeting banks (on August 19) for vari

PSU banks' compensation against fraud rises over three-fold to Rs 140 cr

Public sector banks have reported over three-fold jump in compensation towards frauds or e-frauds reported by their customers to Rs 140 crore during 2023-24, Parliament was informed on Tuesday. The amount of compensation paid by these banks stood at Rs 42.70 crore in the previous fiscal, Finance Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha. Union Bank of India paid the highest compensation of Rs 74.96 crore followed by Bank of India at Rs 20.38 crore and Indian Bank at Rs 16.16 crore during FY24, she said. In FY23, Union Bank of India was again the highest compensation payer at Rs 12.18 crore followed by Central Bank of India at Rs 11.68 crore. Sitharaman further said that RBI, in July 2017, issued instructions on limiting the liability of customers in cases of unauthorised electronic banking transactions. As per these instructions, a customer has zero liability if the unauthorised transaction occurs on account of contributory fraud or negligence/deficien

Move to reduce govt stake in PSB to less than 51% will be resisted: Cong

The Congress on Friday said any move to bring down the Union government's stake in 12 public sector banks to less than 51 per cent would continue to be resisted forcefully both in Parliament and outside. The party asserted that the mergers in the public sector banking industry in the last seven years have been broadly accepted only because the Union government's share was not to be reduced to below 51 per cent. Congress general secretary in-charge communications Jairam Ramesh recalled that on this day 55 years ago, then prime minister Indira Gandhi had moved decisively to nationalise 14 banks and opened a whole new chapter in India's economic history. "I have described the background to this momentous event based on archival material in my 'Intertwined Lives: PN Haksar and Indira Gandhi'. DN Ghosh who played a key role along with Haksar has also left a detailed account of it in his very valuable memoir 'No Regrets'," he said. IG Patel was the special secretary in the finance minist