Page 8 - Public Sector Banks

3 GMs to take charge of TMB operations after Sankarasubramaniam's exit

Krishnan had resigned from the post of MD and CEO of the Tuticorin-based bank, on September 28 last year, citing personal reasons

Bank of India floats 666 days term deposits bucket with 7.3% rate

Slashes rate on 2-year deposits by 45 basis points

PSB loan growth lags industry; cautious approach to protect margins

According to RBI, the share of external benchmark linked loans (EBLR) in total outstanding floating rate loans increased to 56.2 per cent as at end-December 2023 from 49.6 per cent in March 2023

Public sector banks' total profit jumps 35%, crosses Rs 1.4 trn in FY24

Public sector banks' cumulative profit crossed Rs 1.4 lakh crore in the financial year ended March 2024, recording a growth of 35 per cent over the previous year on a high base of Rs 1 lakh crore. The 12 Public Sector Banks (PSBs) together had earned a net profit of Rs Rs 1,04,649 crore in 2022-23. Out of the total profit of Rs 141,203 crore earned during the FY24, market leader State Bank of India (SBI) alone contributed over 40 per cent of the total earnings, as per the published numbers on exchanges. SBI earned a profit of Rs 61,077 crore 22 per cent higher than the previous financial year (Rs 50,232 crore). In percentage terms Delhi-based Punjab National Bank had the highest net profit growth with 228 per cent to Rs 8,245 crore, followed by Union Bank of India with a 62 per cent rise to Rs 13,649 crore and Central Bank of India with a 61 per cent increase to Rs 2,549 crore. Among the banks which recorded over 50 per cent jump in net profit included Bank of India with a 57 per

Union Bank of India Q4 result: Net profit rises 18% on lower provisions

State-owned Union Bank of India on Saturday reported an 18.36 per cent growth in its consolidated net profit for the March quarter to Rs 3,328 crore, helped by lower provisions. For the fiscal 2023-24, the lender reported a consolidated net profit of Rs 13,797 crore against Rs 8,512 crore in the year-ago period. In the quarter under review, its standalone net profit increased to Rs 3,311 crore from Rs 2,782 crore a year ago. The core net interest income grew 14.38 per cent to Rs 9,437 crore on an 11.7 per cent growth in advances and widening of net interest margin to 3.10 per cent from 2.97 per cent in the year-ago period. Its managing director and chief executive A Manimekhalai told reporters that for FY25, it is aiming for a credit growth of 11-13 per cent and deposit growth to be between 9-11 per cent compared to 9.3 per cent in FY24. It, however, expects a fall in NIMs to 2.8-3 per cent, she said, adding that the targets will be reviewed midway through the year. The non-inter

Indian Overseas Bank clocks Q4 consolidated PAT of Rs 810.42 cr

Public sector Indian Overseas Bank on Thursday reported a consolidated net profit of Rs 810.42 crore. The city-headquartered bank had recorded a consolidated profit of Rs 655.63 crore during the corresponding quarter of last year. For the year ending March 31, 2024 the consolidated net profit grew to Rs 2,665.66 crore from Rs 2,103.99 crore a year ago. The consolidated total income during the quarter under review went up to Rs 9,112.67 crore from Rs 6,630.57 crore in the same quarter last year. For the year ending March 31, 2024 the consolidated total income soared to Rs 29,730.97 crore as compared to Rs 23,523.42 crore in the same period last financial year.

Why foreign financial firms have quit

A surge in prosperity between 2005 and 2008 was purely due to a massive global boom across all geographies

May 1 bank holiday: Are banks closed today? Check state-wise list

Banks will remain closed in some states on May 1 in observance of Maharashtra Day and May Day

Issuance of LOCs at instance of PSBs violation of fundamental rights: HC

The court made the observation on April 23 while quashing the Centre's decision empowering such banks to seek issuance of LOCs

PSBs don't have power to issue 'Look Out Circulars' against defaulters: HC

The Bombay High Court on Tuesday ruled that public sector banks do not have the power in law to issue Look Out Circulars (LOCs) against default borrowers. The HC's verdict would render all LOCs issued by such banks against defaulters as quashed. A division bench of Justices Gautam Patel and Madhav Jamdar held as unconstitutional the clause of an office memorandum issued by the central government empowering the chairpersons of public sector banks to issue LOCs against default borrowers. Advocate Aditya Thakker, appearing for the Union government, sought the HC to stay its order but the bench refused. The court passed its verdict on a bunch of petitions challenging validity of the said clause. The bench said the Bureau of Immigration shall not act upon such LOCs (issued by banks against defaulters). The court also said its judgment would not affect the orders issued against any defaulter by a tribunal or a criminal court restraining them from travelling abroad. While the office ..

Fund managers trim PSB exposure, see better value in private banks

MFs pull out Rs 2,500 crore in March from state-owned lenders; replough Rs 4,900 crore into private sector peers

50% leadership of PSBs needs to do a catch up on digitisation: Study

The senior management at banks typically includes chief executive officers, assistant CEOs, chief financial officers and any other senior executive officers

Deposit rates raised by public sector banks higher than private peers

The share of bank loans bearing over 8 per cent interest rates increased from 47.2 per cent in March 2022 to 78.9 per cent in March 2023, and further to 83.7 per cent in December 2023

ICRA revises FY25 outlook for banking sector to 'stable' from 'positive'

Rating agency expects credit growth and profitability to moderate in the sector

Public sector banks' dividend payout may exceed Rs 15,000 crore in FY24

Public sector banks (PSBs) are likely to pay a dividend in excess of Rs 15,000 crore for the financial year ending March 2024 on the back of improved profitability, according to sources. In the first three quarters of the current financial year, all 12 PSBs earned a total profit of Rs 98,000 crore, only Rs 7,000 crore less than the entire FY23. PSBs earned the highest-ever aggregate net profit of Rs 1.05 lakh crore during FY23 compared to Rs 66,539.98 crore earned in 2021-22. As a result, the government earned a dividend of Rs 13,804 crore, 58 per cent higher than the Rs 8,718 crore paid out in the previous financial year. Since the profit in the current financial year would be much higher than the previous year, so will be the dividend payout to the government, sources said. Going by the past record, the dividend payout for FY24 should be in excess of Rs 15,000 crore, they added. Earlier in January, the Reserve Bank, in its draft guidelines, proposed to allow banks having net ..

Improving metrics keep Street positive on stocks of public-sector banks

In FY23 and FY24 (7 quarters of two fiscals) they reported higher earnings than in the past decade ending FY22

Public-sector banks asked to submit three-year business plans by March-end

According to the finance ministry's order, the business plans should cover strategies related to increasing low-cost deposits, raising capital, and resolving bad loans, among other things

Banks asked to check mis-selling, safeguard customers' interest: DFS Secy

Financial Services Secretary Vivek Joshi has said that public sector banks have been asked to check mis-selling of insurance products and ensure protection of account holders' interest. Banks have been sensitised on the matter, as the Department of Financial Services (DFS) regularly gets complaints that fraudulent and unethical practices are being adopted by banks and life insurance companies for procuring policies from the bank customers, he told PTI in an interview. "Banks have been asked to give utmost importance to the interest of account holders," he said. There have been instances where life insurance policies were sold to customers aged above 75 years in tier-II and III cities. Usually, banks push products of their subsidiary insurers. When resisted by customers, branch officials would sheepishly admit that they are under pressure from the top. Insurance products are pushed when customers go to seek any kind of loan or buy a term deposit. It is also conveyed that the Centr

Starting an FD? Here are the top rates offered by private and public banks

Navigating fixed deposit options: A comprehensive guide to top rates across different banks

The good times will last longer, says public sector bank CEOs panel

Bandyopadhyay spoke on the situation's sustainability with some of India's leading PSB chiefs