Page 15 - Public Sector Banks

Savings deposit growth in Q2 slumps to 9.4% YoY while FDs gain traction

Growth of money kept in current accounts moderated to 8.8% this September, from 17.5% a year ago

Interest subvention on KCC crop loan to continue in FY23, FY24: RBI

The government of India has approved the continuation of the Interest Subvention Scheme (ISS) with modification for the financial years 2022-23 and 2023-24, RBI said

Union Bank likely to sell tier-2 bonds worth Rs 2,000 crore next week

Tier-2 bond sale plan comes amid sharp decline in bond yields

Banking on tenure

Longer terms for PSB chiefs address the talent gap partly

Govt appoints 10 executive directors to public sector banks for 3 years

The union government decided to increase the term of wholetime directors in public sector banks, including MD & CEOs, to 10 years, from five years

Will the dream run continue for banks?

As the war for deposits escalates, the cost of money will rise and banks' NIM will be under pressure. Also, a few banks may invite trouble by aggressively growing their retail books without necessary

Govt raises PSB CEO term to 10 years, seeks younger talent at the top

A candidate can be appointed for 5 years initially, extendable for another five years; this is also applicable for executive directors who are also wholetime directors

Polarisation in performance of Indian banks to persist: S&P Global Ratings

Polarisation in the performance of Indian banks will persist as many large public sector banks are still saddled with weak assets, high credit costs, and poor earnings, S&P Global Ratings said on Thursday. It said State Bank of India and leading private sector banks have largely addressed their asset quality challenges, and their profitability is improving more sharply than the banking system. In its Global Banking Outlook-2023 report, S&P said economic recovery is driving credit costs to cyclical low levels and stronger balance sheets and higher demand should boost bank loan growth, but deposit growth will lag. "Polarisation in the performance of banks to persist," S&P said, adding the return on average assets would be 'adequate' at 1 per cent. "Many large public sector banks are still saddled with weak assets, high credit costs, and poor earnings. Similarly, we expect a mixed-bag performance for finance companies (fincos). The asset quality of these fincos is often ...

PSBs' asset quality challenges to pull down FY23 banking outlook

State Bank of India and leading private-sector banks have largely addressed their asset quality challenges, and their profitability is improving more sharply than the system's, S&P added

Keep eye on macroeconomic scene: RBI to banks amid deposit growth concern

Concerned over deposit growth lagging high credit offtake; seeks views on collection, IT infra, DBUs

12 PSBs report 50% jump in combined Q2 net profit at Rs 25,685 crore: FM

Finance Minister Nirmala Sitharaman on Monday said the government's efforts to reduce bad loans are yielding result with 12 public sector banks reporting a 50 per cent jump in combined net profit at Rs 25,685 crore in the second quarter ended September. In the first half of FY23, the cumulative net profit of all public sector banks (PSBs) increased by 32 per cent to Rs 40,991 crore. During the second quarter, the SBI reported the highest-ever profit of Rs 13,265 crore. On year-on-year basis, this was 74 per cent higher than the same quarter a year ago. "The continuous efforts of our govt for reducing the NPAs and further strengthening the health of PSBs are now showing tangible results. All 12 PSBs declared net profit of Rs 25,685 cr in Q2FY23 & total Rs 40,991 cr in H1FY23, up by 50% & 31.6%, respectively (y-o-y)," Sitharaman said in a tweet. She further said Canara Bank reports an 89 per cent jump in profit to Rs 2,525 crore as compared to second quarter of the previous ...

PSBs' Q2 net profits zoom 50% YoY on steady rise in interest income

Strong loan growth, rising lending rates give the boost

Bandhan Bank offers 7.5% interest rate on retail FDs for limited period

Rate applicable to both fresh deposits and renewals of up to Rs 2 crore for a tenure of 600 days, seniors to get 0.5% more

Bank of Baroda's Q2 net jumps 58.7% aided by rise in NII, dip in provisions

Provisions of the lender declined 41 per cent YoY to Rs 1,628 crore in Q2FY23.

Indian Bank Q2 net profit up 12% to Rs 1,225 crore in July-Sept quarter

Public sector major Indian Bank has posted a 12 per cent rise in net profit during the second quarter of the financial year to Rs 1,225 crore,

Identify sensitive posts, rotate officers in prescribed time limit: CVC

The Central Vigilance Commission has asked public sector banks, undertakings and central government departments to regularly identify sensitive posts and ensure the rotation of officers manning them within the prescribed time limit. The move came after the CVC noticed that many of the organisations are not following its guidelines about the identification of sensitive posts in letter and spirit. In an order, the commission said the Chief Vigilance Officers (CVOs) -- who act as distant arm of the panel to check corruption -- in consultation with the chief executive/management of the respective organisations, should immediately undertake an exercise to identify sensitive posts in their organisations. "In future, an exercise to review and identify sensitive posts may be conducted after an interval of every three years," said the order dated October 25. Further, it may also be ensured that the officials holding sensitive posts are transferred/posted out from such posts as per the time

PSBs to soon have a helpline for customer grievance redressal: Report

This comes against the backdrop of a large number of complaints by customers over non-operating helpline numbers of several branches of PSBs in India

Indian Banks' Association meeting on Friday to elect its new chairman

The Indian Banks' Association (IBA), an industry body consisting of all the banks including foreign lenders with branches in India, will meet on Friday to elect its new chairman. As per convention, sources said, the senior most managing director of a public sector bank is elected as chairman for a period of one year. Currently, Punjab National Bank (PNB) Managing Director A K Goel is the chairman of the lobby group. Usually, the chairman does not get a second term. Considering the ensuing wage revision talks and other crucial issues in the banking industry, it is being keenly watched who will take over the mantle from Goel. Formed in 1946 with 22 members, IBA now has 237 members and associates, according to its website.

Banks offer over 3-year high interest rate to raise funds through CDs

Call mkt rates at higher end of rate corridor as liquidity shrinks rapidly

NARCL makes offers to acquire Jaypee Infratech debt held by Public Banks

NARCL's Rs 3,570-crore offer for the Rs 9,234 crore debt held by nine public sector lenders has triggered a Swiss challenge auction where it will have the right to match the winning bid and take over