Page 6 - Public Sector Banks

Looking ahead: Financial sector braces for leadership changes in 2025

Two public sector banks, Punjab National Bank (PNB) and Indian Bank, will welcome new leaders at the start of the year as their current incumbents retire on December 31, 2024

Low NPAs, credit growth to help PSU banks cross Rs 1.5 trn profit in FY25

Low NPAs and double-digit credit growth are expected to drive profits of public sector banks past the Rs 1.5 lakh crore milestone in 2024-25. PSBs reported a 25 per cent jump in their total net profit to Rs 85,520 crore in the first half of 2024-25 compared to Rs 68,500 crore in H1'FY23 and the trajectory is likely to continue in the second half as well. Public lenders recorded their highest-ever aggregate net profit of Rs 1.41 lakh crore in 2023-24 on the back of significant improvement in asset quality, credit growth, healthy capital adequacy ratio and rising return on assets. The Gross NPA ratio of PSBs has witnessed a remarkable improvement, declining to 3.12 per cent in September 2024 from a peak of 14.58 per cent in March 2018. This significant reduction reflects the success of targeted interventions aimed at addressing stress within the banking system. Another indicator of the improved resilience of PSBs is their Capital to Risk (Weighted) Assets Ratio (CRAR), which rose by

IBA suggests FinMin for training sessions of bankers to handle fraud

The number of frauds in the banking sector increased over four times in the past five years to 36,075

GNPA of PSBs declines to 3.12% in Sep from 14.58% in March 2018: FinMin

Gross non-performing assets (NPAs) of public sector banks (PSBs) have declined to a decade low of 3.12 per cent at the end of September 2024 from a peak of 14.98 per cent in March 2018 on the back of measures like the 4Rs -- recognition, recapitalisation, resolution, and reform -- taken by the government, the finance ministry said on Thursday. Since 2015, the government implemented a comprehensive 4Rs strategy of recognising NPAs transparently, resolution and recovery, recapitalising PSBs, and reforms in the financial system to address the challenges faced by PSBs, it said. Capital adequacy ratio of PSBs improved 393 bps to reach 15.43 per cent in September 2024 from 11.45 per cent in March 2015, it said. During 2023-24, PSBs recorded the highest-ever aggregate net profit of Rs 1.41 lakh crore against Rs 1.05 lakh crore in 2022-23, it said, adding that the figure was Rs 0.86 lakh crore in the first half of 2024-25. In the last three years, PSBs have paid total dividend of Rs 61,964

FM counters Rahul on PSBs, says their turnaround has benefitted everyone

Gandhi alleged on X that the Narendra Modi government has turned PSBs ("lifelines of the masses") into private financiers for only the rich and powerful corporations

Gross NPAs of public sector banks at Rs 3.16 trn, 3.1% of outstanding loans

The gross non-performing assets of public sector banks (PSBs) stood at Rs 3.16 lakh crore as of September 30, which is 3.09 per cent of the outstanding loans, Parliament was informed on Tuesday. Minister of State for Finance Pankaj Chaudhary said in the Rajya Sabha that as per provisional data of the Reserve Bank of India (RBI), gross NPAs of PSBs and private sector banks as on September 30, 2024 were Rs 3,16,331 crore and Rs 1,34,339 crore, respectively. Further, gross NPAs as percentage of outstanding loan was 3.09 per cent in public sector banks and 1.86 per cent in private sector banks. Chaudhary further said as of March 31, 2024, 580 unique borrowers (excluding individuals and overseas borrowers), each having loan outstanding of more than Rs 50 crore, were classified as wilful defaulters by Scheduled Commercial Banks. To a query on the number of cases resolved and amount of haircuts by banks through the operation of Insolvency and Bankruptcy Code, Chaudhary said as per data, u

Microfinance loan book shrinks by 3.7% sequentially to Rs 4.08 trn in Sep

However, the GLP grew by 8.5 per cent year-on-year (Y-o-Y) to Rs 4.08 trillion in September 2024, up from Rs 3.76 trillion in September 2023

PSBs lag behind on govt insurance enrolment targets, shows data

Till October of the plan year 2024-25, PSBs have achieved only 40 per cent of their total enrolment target of 6.4 crore for PMSBY

PSBs urge CBI for timely FIR registration, regular updates on case progress

The Department of Financial Services (DFS) on Wednesday organized a coordination meeting on vigilance matters of PSBs

PSBs safe, stable, performed exceptionally well in recent years: Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said that the public sector banks are safe, stable and healthy and have performed "exceptionally well" in recent years earning Rs 85,520 crore profit in the first six months of the current fiscal. Replying to a debate on the Banking Laws (Amendment) Bill, 2024, the minister said that all the Public Sector Banks have turned profitable. The Bill, which amends the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, was later passed by the Lok Sabha by a voice vote. She further said that total bank branches of scheduled commercial banks have increased by 3,792 in a year to reach 16,55,001 in September 2024. Out of this 85,116 branches are of public sector banks. Stressing that the Indian banking system is critical to the growth of the ..

Govt not considering PSU bank mergers: MoS Finance Pankaj Chaudhary

The government is not considering merger of public sector banks, Minister of State for Finance Pankaj Chaudhary said on Tuesday. In a written reply to a question in the Rajya Sabha, he said several steps have been taken by the government to strengthen the financial condition of public sector banks (PSBs). Chaudhary said the reforms undertaken by the government in the banking sector have created systemic improvements and instituted checks and controls to minimise the risk of recurrence of excessive stress. To a question on whether the merger of public sector banks is being considered, Chaudhary replied: "No sir". Chaudhary further said PSU banks have shown improvement in their capital adequacy ratio and gross non-performing assets position post-merger. "The merger has helped in improved synergies, economies of scale, better technology integration and the same has resulted in uniform improvement across all key financial parameters," Chaudhary added. In the biggest consolidation exe

PSBs at only 42% of FY25 MUDRA disbursement target by October-end

As of October 25, MUDRA loans amounting to Rs 28,511 crore or 12.4 per cent of the annual target for PSBs, is still under process

PSBs get green flag to raise Rs 25,200 cr through equity dilution in FY25

So far, the PSBs have raised Rs 8,500 crore through Qualified Institutional Placement (QIP) in FY25, according to data from Prime Database

PSBs to launch new products in 3-4 months to ramp up credit growth

Financial Services Secretary M Nagaraju on Tuesday said public sector banks will unveil new products in the next few months to improve credit growth. "We are actually committed to enhancing, and we want to push as much credit as possible because we have a huge number of young people," he said while addressing the Financial Inclusion and Fintech Summit organised by CII here. Public sector banks are going to launch new products in the next 3-4 months to push credit for all sectors, including MSME, he said. Over the last few years, the government has already taken multiple steps to improve credit availability to small borrowers, including announcing a new credit model in the Budget to lend to borrowers with no previous financial records. Though the banking sector is robust, Nagaraju said rising digital frauds are posing a risk to financial sector stability, and banks should focus on addressing this challenge. Both digital innovations and financial literacy will help mitigate this, he

Public sector banks prepare to open AT-1, Tier-2 bond floodgates

They target raising Rs 54,800 cr in FY25

FSIB recommends Binod Kumar for the post of MD and CEO of Indian Bank

The Financial Services Institutions Bureau (FSIB) on Saturday recommended Binod Kumar for the post of Managing Director of Chennai-based Indian Bank. Kumar, who is serving as Executive Director of Punjab National Bank, will replace S L Jain on his superannuation next month. Declaring the result of the selection process, the FSIB -- the headhunter for directors of state-owned banks and financial institutions -- in a statement said the bureau interviewed 15 candidates on Sunday. "Keeping in view their performance in the interface, their overall experience and the extant parameters, the Bureau recommends Binod Kumar for the position of MD & CEO in Indian Bank," it said. Earlier in April, the bureau had selected Asheesh Pandey for the position but the Reserve Bank of India (RBI) had raised some reservation over his name. Therefore, the bureau held a fresh interview to choose a new person in place of Pandey. The final decision on the FSIB recommendation would be taken by the ...

Revised PLI scheme undermines autonomy of boards of PSBs, says AIBOC

Banks' officers union AIBOC on Friday said the recently announced revised Performance Linked Incentives (PLI) for Whole Time Directors and senior executives infringes upon autonomy of boards of public sector banks. Earlier this week, the Department of Financial Services announced a revised PLI scheme for Whole Time Directors. The revised scheme also included officers from Scale IV to Scale VIII of public sector banks. However, the PLI for officers up to Scale VII has already been determined through bilateral agreements between the Indian Banks' Association (IBA) and officers' associations at the industry level. These agreements, based on mandates provided by member banks' boards, also encompass officers in Scale VIII, All India Bank Officers' Confederation (AIBOC) said in a letter written to the Financial Services Secretary. The Department of Financial Services (DFS) directive undermines this well-established framework, violating the sanctity of collective bargaining and the essenc

Finance ministry directs major PSBs to fast-track re-KYC verification

Out of 53.9 crore Pradhan Mantri Jan-Dhan Yojana accounts, 11.2 crore are inoperative and 10.5 crore accounts are pending for re-KYC

PSBs set to launch MSME credit model this month, reveals document

Initially, nine PSBs such as Bank of Baroda, Canara Bank, Bank of Maharashtra and others will allow loans only up to Rs 25 lakh. Bank of India will offer loans up to Rs 1 crore

PSBs register strong business growth of 11% in H1 FY25, says FinMin

There are currently 12 public sector banks in India, including State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), Indian Overseas Bank (IOB), and UCO Bank, among others