Page 2 - Public Sector Banks Psbs

Interest rate spreads hit new 10-year low of 2.25% for PSBs in April 2024

The spread between the outstanding lending and deposit rates has narrowed compared to the spread between fresh lending and deposit rates

Net worth of CPSEs increased by 82% in 9 years, says finance minister

Sitharaman said the market capitalisation of 12 listed public sector banks (PSBs) has surged by 2.95 times in the past three years to Rs 16.12 trillion as of March 31, 2024

PSBs don't have power to issue 'Look Out Circulars' against defaulters: HC

The Bombay High Court on Tuesday ruled that public sector banks do not have the power in law to issue Look Out Circulars (LOCs) against default borrowers. The HC's verdict would render all LOCs issued by such banks against defaulters as quashed. A division bench of Justices Gautam Patel and Madhav Jamdar held as unconstitutional the clause of an office memorandum issued by the central government empowering the chairpersons of public sector banks to issue LOCs against default borrowers. Advocate Aditya Thakker, appearing for the Union government, sought the HC to stay its order but the bench refused. The court passed its verdict on a bunch of petitions challenging validity of the said clause. The bench said the Bureau of Immigration shall not act upon such LOCs (issued by banks against defaulters). The court also said its judgment would not affect the orders issued against any defaulter by a tribunal or a criminal court restraining them from travelling abroad. While the office ..

Public-sector banks asked to submit three-year business plans by March-end

According to the finance ministry's order, the business plans should cover strategies related to increasing low-cost deposits, raising capital, and resolving bad loans, among other things

Four state-owned banks may be approved to raise funds in H1 of FY25

Punjab National Bank eyes FPO, Central Bank of India seeks approval for OFS; move aimed at accelerating lending business and improving public participation

Private sector banks' Casa deposits ratio see sharper drop than PSBs

The overall Casa ratio of the Indian banking system declined to 40.1 per cent from 42.8 per cent during the same period

Sitharaman meets heads of public sector banks, reviews performance

Finance Minister Nirmala Sitharman on Saturday held a meeting with heads of public sector banks and reviewed their financial performance. During the meeting, concerns related to cyber security and the risks on the financial sector were discussed, sources said. Issues related to fraud and wilful defaulters and progress on the National Asset Reconstruction Company Ltd (NARCL) also came up for discussion, they said. This is the probably last full review meeting before the presentation of Budget 2024-25 and general elections later next year. On the performance front, PSU banks have earned a net profit of about Rs 68,500 crore during the first six months of the current financial year. During 2022-23, it said banks' balance sheets grew at a healthy pace, with both deposits and credit growth accelerating. The Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks (SCBs) fell to a decade low of 3.9 per cent at the end of March 2023 and further to 3.2 per cent in September

FinMin to meet heads of PSBs on Sat; review implementation of govt schemes

Finance minister Niramala Sitharaman is scheduled to meet managing directors of public sector banks (PSBs) on Saturday to review the financial performance of lenders. PSU banks have earned a net profit of about Rs 68,500 crore during the first six months of the current financial year. The meeting is going to take stock of the progress made by banks in achieving targets set for the various government schemes, including Pradhan Mantri Jan Dhan Yojana (PMJDY), Kisan Credit Card (KCC), Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY), sources said. This is the probably last full review meeting before the presentation of Budget 2024-25 and general elections later next year. She will also discuss on measures to improve customer service and cyber security, sources said. The finance minister would also review financial inclusion, credit growth, asset quality, and business growth plan of banks for the next financial year, the sources said, adding non-performing assets (NPAs) and the reco

PSBs given Rs 15,000 crore on ED action, says FM Nirmala Sitharaman

Finance minister said that over last two financial years, the number of non-performing asset accounts in the commercial banks have declined from 2.19 cr to 2.06 cr, showing decrease of 6 per cent

Indian Bank Q2 results: Net profit rises 61% to Rs 2,068.49 crore

The total income of the Chennai-based bank also rose by 25 per cent during the quarter, reaching Rs 15,929.4 crore compared to Rs 12,714.2 crore in the same quarter of the FY23

Pay public sector bankers well, and give them a break on Saturdays

If we want public sector banks to compete with their private peers, they should get competitive compensation, linked to performance

FinMin tells PSBs to explore AI-powered collab in tech, HR training

The ministry cautioned PSBs on customer protection when critical services, including technology services, were outsourced

Top Headlines: Govt's dividend from PSBs, Meesho hints at IPO in '25 & more

Business Standard brings you top news at this hour

Supporting growth

Healthy bank balance sheets will enable investment

State-run banks likely to launch special drive to recover written-off loans

The government has instructed public sector banks (PSBs) to focus on written-off loans, a senior official said

Finance Secretary Vivek Joshi holds review meeting with heads of PSU banks

Financial Services Secretary Vivek Joshi on Thursday chaired a meeting with heads of Public Sector Banks (PSBs) and financial institutions, and urged them to push various financial inclusion schemes, including Jan Suraksha and Mudra Yojana. The day-long review meeting was also attended by senior officials from the Department of Animal Husbandry, Department of Fisheries, Ministry of Housing and Urban Affairs, and Ministry of Agriculture & Farmers Welfare. Joshi exhorted the PSBs to achieve the targets allocated to them under the various schemes for financial inclusion in a time-bound manner, the finance ministry said in a statement. To achieve saturation under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY), the ministry has also launched a three-month campaign. PMJJBY offers life insurance cover of Rs 2 lakh in case of death due to any reason to people in the age group of 18-50 years having a bank or post office account, who give ..

Street Signs: PSU Bank exchange-traded funds, Yum! Brands stocks, and more

Analysts say Yum!'s - which operates Kentucky Fried Chicken (KFC), Taco Bell, and Pizza Hut food chains - performance has improved, driven by aggressive store expansion vis-a-vis other players

After BoB, Bank of Maharashtra cuts home loan rate effective March 13

20 bps reduction takes rate to 8.4% as the lender scales up efforts to cater to growing volumes ahead of the close of the financial year

Govt may not announce capital infusion for PSU banks in Budget: Sources

The government is unlikely to announce capital infusion for public sector banks (PSBs) in the upcoming Budget as their financial health has improved significantly and they are on track to earn a combined profit of Rs 1 lakh crore, sources said. Their capital adequacy ratio is much above the regulatory requirement and varies between 14-20 per cent. To augment their resources, banks are raising growth funds from the market and also by selling their non-core assets, they added. The government last provided capital support to banks in 2021-22. It had earmarked Rs 20,000 crore for recapitalisation of PSBs through supplementary demands for grants. The government infused Rs 3,10,997 crore to recapitalise banks during the last five financial years i.e., from 2016-17 to 2020-21, out of which Rs 34,997 crore were sourced through budgetary allocation and Rs 2,76,000 crore through issuance of recapitalisation bonds to these banks. Finance Minister Nirmala Sitharaman is scheduled to present th

Consolidation of PSBs gives a robust base to scale: Bankers at BFSI Summit

Have better underwriting, risk magt to manage high credit growth