Page 11 - Public Sector Banks

Canara Bank reports profit surge of 75% to Rs 3,535 cr in June quarter

State-owned Canara Bank on Monday reported a 75 per cent rise in net profit at Rs 3,535 crore in the June quarter, helped by decline in bad loans and growth in interest income. The Bengaluru-based lender had posted a net profit of Rs 2,022 crore in the year-ago period. Total income in the first quarter of the current fiscal rose to Rs 29,828 crore, from Rs 23,352 crore in the same period a year ago, Canara Bank said in a regulatory filing. Interest earned by the bank improved to Rs 25,004 crore over Rs 18,177 crore in June 2022. The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 5.15 per cent of gross advances at the end of the June quarter, from 6.98 per cent a year ago. Similarly, net NPAs or bad loans declined to 1.57 per cent, as against 2.48 per cent in the year-ago period. As a result, provision for bad loans came down to Rs 2,418 crore, as against Rs 2,673 crore allocated in the same quarter a year ago. Capital Adequacy Ratio of

RBI to banks: Report all digital frauds not just those above Rs 1 lakh

The rising volumes of UPI transactions and related frauds have emerged as a major challenge for the banks

IndusInd Bank Q1FY24 results: Net profit up 30%, gross bad loans at 1.94%

The net NPAs fell to 0.58 per cent from 0.67 per cent during the period

RBI governor asks banks to remain extra careful, focus on governance

The governor held meetings with the MD and CEOs of public sector banks and select private sector banks

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

PSBs should follow transparent NPA recognition norms, pursue risk mgmt: FM

Finance Minister Nirmala Sitharaman on Thursday asked heads of public sector banks (PSBs) to ensure fair and transparent recognition of bad loans and pursue robust risk management practices so as to maintain the momentum of growth and profitability. PSBs earned a record aggregate net profit of around Rs 1.05 lakh crore in FY2022-23, almost triple from net profits earned in 2013-14. In the review meeting with the top management of PSBs, discussions were held on the positive macro trends, improved business sentiments, Twin balance sheet advantage' and performance of the state-run banks. All the major financial parameters viz., credit deployment, profitability, asset quality, capital adequacy etc. indicate that the performance of PSBs has significantly improved. They're adequately capitalised, resilient, and have sound financial health. It was noted that the asset quality of PSBs has improved significantly with gross NPAs at 4.97 per cent and net NPAs at 1.24 per cent in March 2023, t

LIVE: HC to give judgement in Rahul Gandhi defamation case on Friday

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Finance ministry asks PSBs to be wary of competition in deposits segment

Directive comes after the recent merger of HDFC Ltd with HDFC Bank

State-run banks confident of withstanding macro shocks: Finance Ministry

India's state-run banks are confident of withstanding any macroeconomic shocks and expect their outlook to improve, despite headwinds in the global banking sector, the finance ministry said

Private banks more aggressive in writing off bad loans than public banks

The ratio of write-offs to gross non-performing assets (GNPAs) in private banks was 47.9 per cent, much higher than 22.2 per cent in public banks

FM to meet chiefs of PSB banks to review financial performance on Thursday

Finance Minister Nirmala Sitharaman is scheduled to meet chiefs of public sector banks (PSBs) on Thursday and review their financial performance. This is going to be the first review meeting after the 2022-23 financial results. In the last fiscal, PSBs together posted a record profit of Rs 1.04 lakh crore, 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 PSBs have come a long way as their profit touched Rs 1,04,649 crore in 2022-23. Besides the review of financial performance, sources said, the meeting is going to take stock of the progress made by banks in achieving targets set for the various government schemes, including Kisan Credit Card (KCC), Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY) and emergency credit line guarantee scheme (ECLGS) to help businesses affected by Covid-19. Heads of the banks would also apprise the finance minister about the performance duri

FinMin requests FSIB to fill up non-executive chairman posts in PSBs

Positions vacant in six of 11 state-owned lenders, some for two years

LIVE: SC protects Setalvad from arrest, stays Gujarat HC order for a week

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Banks are to remain closed for 15 days this month; check details here

According to the Reserve Bank of India's (RBI) list of holidays, 8 holidays are state-specific holidays for various celebrations across various states alongside others are weekend holidays

Rs 31,000-crore govt bond auction sees firm demand on short covering

The Reserve Bank of India set the cut-off price on the 7.41%, 2036 bond at Rs 101.90, against the market expectation of around Rs 101.83

Governance gaps

Govt must not delay PSB appointments

Chairman posts vacant in six of 11 public sector banks, some for two years

Bankers said that RBI officials agreed on the issue of compensation but said such matters were decided by the government

Pvt banks' slippages from Covid recast nearly double than that of PSBs

Private sector banks' slippages and write-offs from loans restructured after the COVID-19 pandemic are nearly double than that of their state-owned peers, a report said on Friday. Private sector banks have seen slippages and loan write-offs at 44 per cent, as against 23 per cent in case of public sector banks, the report by India Ratings and Research (Ind-Ra) said, calling the trend surprising. The domestic rating agency analysed annual results of lenders for FY23. It found that the peak of restructured assets in bank books was in September 2022, when the overall quantum of recast loans had touched Rs 2.2 lakh crore. While there could be some more slippages, banks are of the view that the performance of the restructured portfolio would broadly mirror the performance of the overall portfolio, it said. It can be noted that in the aftermath of the pandemic, which led to a hasty lockdown that led to a contraction in the economy, the RBI had announced a restructuring scheme followed by

RBI-appointed panel suggests host of customer-centric initiatives for banks

An RBI-appointed panel on Monday recommended hosts of customer-centric initiatives for banks, including online settlement of claims by heirs of deceased account holders, flexibility for submission of life certificates by pensioners and a centralised KYC database. The report of the Committee for Review of Customer Service Standards in RBI Regulated Entities (REs) has also suggested that the operations of accounts should not be stopped pending periodic Know Your Customer (KYC) updates. It recommended that there should be a time limit for the return of property documents to borrowers after the closure of the loan account, failing which a penalty should be imposed on the lender. In case of loss of property documents, the RE should not only be obligated to assist in obtaining certified registered copies of documents at their cost but also compensate the customer adequately, keeping in view the time taken to arrange the alternate copies of the documents, the report said. In May last year

RBI raises the governance premium for PSU banks on the road to 2047

The Governor of the RBI has for the first time provided a peek into the power structures within bank boards