Public Sector Banks

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

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

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

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

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 ..

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

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

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

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

They target raising Rs 54,800 cr in FY25

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 ...

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

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

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

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

Heads of public sector banks discuss the present and future of the banking sector in conversation with consulting editor Tamal Bandyopadhyay at the Business Standard BFSI Insight Summit

Concerned over the growing instances of cyber frauds, the finance ministry on Tuesday asked public sector banks (PSBs) to align their digital and cybersecurity frameworks with industry best practices and ensure customer protection and operational continuity as top priorities. During a review meeting chaired by the Department of Financial Services (DFS) Secretary M Nagaraju, discussions were held on enhancing the robustness of PSBs, building on recent financial achievements, and addressing strategic challenges with key focus on financial performance indicators, assets and liabilities management, cyber resilience, and digital payments infrastructure. The secretary exhorted the public sector banks (PSBs) to accelerate the pace of lending to agriculture and MSMEs as well as deepen financial inclusion. PSBs were asked to continue strengthening their financial and operational frameworks, particularly in light of the evolving market dynamics and cyber security needs, the finance ministry .

Public sector banks (PSBs) and financial institutions have realised Rs 4.5 crore through scrap disposal during one month-long special campaign with a special focus on minimising pendency and institutionalising Swachhata from October 2-31, 2024. The Department of Financial Services (DFS) launched Special Campaign 4.0 with special impetus on better space management, customer-centric initiatives, making the environment clean and green, record management and disposal of scrap, an official statement from the finance ministry said. All the organisations of DFS, PSBs, Public Sector Insurance Companies and other Public Sector Financial Institutions like NABARD, SIDBI, EXIM Bank, NHB, IIFCL etc. actively participated in the Special Campaign 4.0. The DFS achieved 100 per cent disposal of all identified Public Grievances, Public Appeals, PMO references and MP references, it said. As much as 11.79 lakh square feet of space has been freed and revenue of Rs 4.50 crore has been earned through scr

Regulatory comfort drives bank boards to appoint SBI officials for stability

Nomura has reaffirmed its 'Buy' rating for SBI, maintaining a target price of Rs 980. This target suggests a potential upside of approximately 25per cent from the previous closing price of Rs 781.