Page 12 - Public Sector Banks

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

Private banks slower than public sector banks in raising interest rates

The hike in lending rates of all scheduled commercial banks on outstanding loans since May 2022 has been only 95 bps

PSBs transfer Rs 35,012 cr unclaimed deposits to RBI; SBI tops list

Among the PSBs, SBI tops the list with an unclaimed amount of Rs 8,086 crore, while Punjab National Bank has Rs 5,340 crore and Canara Bank has Rs 4,558 crore

Government asks state-run banks to conduct more robust stress tests

The matter was reviewed at a March 25 meeting of the bank leaders with Finance Minister Nirmala Sitharaman, who met to discuss progress of a reform agenda for the lenders

PSU banks recover 14% of written-off loans in last 5 years: FM Sitharaman

Public sector banks could recover only 14 per cent of the written-off loans worth Rs 7.34 lakh crore in the last five years ending March 2022, Parliament was informed on Tuesday. Of Rs 7.34 lakh crore written-off loans, state-owned lenders recovered Rs 1.03 lakh crore, Finance Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha. So after recovery, net written-off stood at Rs 6.31 lakh crore in the last five years. Replying to another question, the Finance Minister said non-performing assets (NPAs), including, those in respect of which full provisioning has been made on completion of four years, are removed from the balance-sheet of the bank concerned by way of write-off as per RBI guidelines and policy approved by bank boards. Banks evaluate/consider the impact of write-offs as part of their regular exercise to clean up their balance sheets, avail tax benefits and optimise capital, in accordance with RBI guidelines and policy approved by their boards, she said.

Expected loss model: PSBs may seek pause on paying govt dividends

Sitaraman said banks' provisioning cover ratio was close to 75 per cent - the highest in about the last 25 years

Deficiencies noticed in recapitalisation of public sector banks: CAG report

As the conduct of the event within the monuments or its precincts is likely to cause damage to the built infrastructure and its environs, the ASI would levy charges for usage

Finance minister asks public banks to take stress tests; what are these?

Bank stress tests were introduced after the 2008 financial crisis, and they revealed the vulnerability of banks to market crashes and economic downturns

India asks state-run banks to monitor top loan accounts strictly: Reports

Indian banks, in the past, have had to take deep haircuts on their exposure to debt-laden companies admitted under bankruptcy legislation