Page 12 - Public Sector Banks

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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

Private banks register higher growth in deposits vs PSBs; rise 9.6% YoY

For the first time, HDFC Bank registered a total deposit of Rs 3.24 trillion, not quite close to SBI's deposits but still a sign of strong growth in terms of deposits

Govt to earn record dividend of Rs 13,800 crore from PSBs for FY23

12 PSBs paying equity dividend of Rs 21,000 crore, up 53% from Rs 13,710 crore for FY22

Public sector banks' total dividend payout 58% higher than in FY22: Report

Three out of 12 PSBs namely SBI, Bank of Baroda, and Canara Bank, declared a three-digit dividend during the year

RBI to brainstorm with bank directors on governance, risk issues on Monday

Topics would cover supervision, enhancing governance and enforcing regulations; role of board in governance and RBI's expectations on governance by banks are likely to figure in discussions

Centre unlikely to undertake any new PSU disinvestment in 2023-24

Disinvestment could resume after 2024 general elections

Demand for 5 days of work at banks hits speed bumps, likely to take time

Public sector banks will have to see that their business is not affected in case private banks decide to work on Saturdays

The HR ailment of public sector banks

Incidents of suicides highlight the prevalent work culture in PSBs

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 set target for selling flagship govt insurance schemes in FY24

Public sector banks (PSBs) have set a target for the sale of flagship government insurance schemes Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) in FY24. Besides, they have also set goals for other financial inclusion schemes like Mudra Yojana and StandUp India Scheme. There are about 8.3 crore beneficiaries under PMJJBY and 23.9 crore under PMSBY, as of now. Since the launch of the schemes in 2015, 15.99 crore enrolment has taken place under PMJJBY, while 33.78 crore under PMSBY as of March 31, 2023. Last year, the finance ministry revised rates from Rs 330 to Rs 436 under PMJJBY and from Rs 12 to Rs 20 for PMSBY, effective June 1, 2022. The revision was being undertaken because of the long-standing adverse claims experience by the schemes and to make them economically viable. According to sources, the ministry has asked banks to encourage customers to buy these policies for multi-years rather than renewing every year. PMJJBY off

Achieve targets under financial inclusion plans: Finance ministry to PSBs

"Banks were advised to leverage their banking correspondents network for outreach and enrolling potential beneficiaries," the finance ministry said in a statement

Banks likely to post robust Q4 numbers; profit may hit record high in FY23

The banking sector is likely to post good numbers in the fourth quarter ended March 2023, and the total profit of public sector banks (PSBs) is expected to touch a record high of Rs 1 lakh crore in FY23, aided by the decline in bad loans and healthy loan growth. According to a senior bank official, the country's biggest lender State Bank of India (SBI) expected to earn a profit above Rs 40,000 crore in the financial year ended March 2023. In the first nine months of the previous financial year, the bank's bottomline stood at Rs 33,538 crore, higher than Rs 31,675.98 crore recorded in FY22. Similarly, other public sector lenders are also likely to report encouraging numbers, helped by a decline in non-performing assets (NPAs), moderation in slippages, double-digit credit growth and rising interest rate. For the first nine months of 2022-23, all 12 PSBs have earned a cumulative profit of Rs 70,166 crore compared to Rs 48,983 crore in the year-ago period, an increase of 43 per cent. "

Finance Ministry to meet chiefs of PSBs, key schemes' progress in focus

DFS secretary to review progress of financial inclusion and social security schemes