Page 3 - Psu Banks

Indian Overseas Bank soars 15% as Care Ratings assigns 'A1+' rating to CoD

The rating for Rs 10,000-crore certificate of deposits (CoD) factors-in the long track record of operations, comfortable capitalisation levels, diversified advances book and deposit base

SBI's earnings growth may taper off in the near-term, warn analysts

State Bank of India (SBI) stock outlook: Analysts at Nomura termed SBI's sharp NIM decline "disappointing" as the lender's YoY NIM expansion of 31bp significantly trailed private banks.

Profit of PSU banks more than doubles to Rs 34,774 cr in April-June quarter

Public sector banks (PSBs) have once again posted stellar performance by registering more than double profit of Rs 34,774 crore for the first quarter ended June 2023. During the April-June period of the previous fiscal, all 12 state-owned banks had recorded a total profit of Rs 15,306 crore, according to quarterly numbers published by public sector lenders. The high-interest regime helped banks to earn a good net interest margin (NIM) during the quarter. Most banks had recorded NIM of over 3 per cent. Pune-based Bank of Maharashtra posted the highest NIM of 3.86 per cent, followed by Central Bank at 3.62 per cent and Indian Bank at 3.61 per cent during the quarter. During the first quarter, four lenders logged a profit of over 100 per cent. The highest percentage growth was recorded by Punjab National Bank, which earned a profit of Rs 1,255 crore against Rs 308 crore in the same quarter of the previous year, a growth of 307 per cent. It was followed by the State Bank of India (SBI

Bank of Baroda to report Q1FY24 results on Aug 5; here's what to expect

Bank of Baroda Q1FY24 results preview: Analysts expect growth in personal loan book to remain robust, taking the total loan book to Rs 9.61 trillion

Indian Bank hits over 4-year high; gains 4% in weak market post Q1 results

The stock of the public sector bank hit its highest level since August 2018

Move to privatise PSBs will be opposed tooth and nail, says AINBOF

Any move to privatise public sector banks (PSBs) will be opposed "tooth and nail", the All India Nationalised Bank Officers Federation (AINBOF) asserted on Wednesday. AINBOF general secretary Sanjay Das said that bank nationalisation was the most successful and biggest economic reform in independent India and paved the way for the public sector banks to play a crucial role in the development in all sectors of the country. With high unemployment, inflation and economic inequalities continuing, there is a need to have control on capital which can be done only through expansion of PSBs and not by handing over these precious assets to "crony capitalists", Das said on the occasion of 55th year of bank nationalisation in the country. The PSBs promoted financial inclusion, mobilised savings and channeled funds to vital sectors of the economy like agriculture, SMEs, education and infrastructure, he said. "The purpose of social control was to accomplish widest possible distribution of bank

Central Bank Q1 profit surges 78% to Rs 418 cr due to decline in bad loans

State-owned Central Bank of India on Monday reported a 78 per cent rise in net profit at Rs 418 crore for the June quarter due to decline in bad loans and increase in interest income. The Mumbai-based lender had posted a net profit of Rs 235 crore in the year-ago period. Total income during the quarter under review increased to Rs 8,184 crore from Rs 6,357 crore in FY23, Central Bank of India said in a regulatory filing. Interest earned by the bank grew to Rs 7,225 crore over Rs 5,527 crore in the June quarter a year ago. Net Interest Income of the bank increased by 48 per cent to Rs 3,176 crore in Q1 FY24, it said. The bank's asset quality showed improvement as gross Non-Performing Assets (NPAs) declined to 4.95 per cent of gross advances by the end of June 2023, from 14.90 per cent as of June 2022. Similarly, net NPAs or bad loans eased to 1.75 per cent as against 3.93 per cent a year ago. Net Interest Margin (NIM) of the bank improved to 3.62 per cent, registering a growth of

FinMin asks IBA to finalise wage revision of bankers of PSU banks by Dec 1

The government has asked the Indian Banks' Association (IBA) to initiate the process of negotiations for the 12th Bi-partite settlement in a time-bound manner and to finalise it by December 1, 2023, said a senior official. The wage revision for employees and officers of the public sector banks is due from November 1, 2022. The early wage revision would help improve working conditions and incentivise the banking sector employees, the official said. Further, the official said, the finance ministry has asked IBA to ensure that all future wage negotiations should be finalised before the beginning of the subsequent period so that the wage revision could be implemented from the due date itself. As a part of the settlement, the IBA is expected to engage in dialogues with the employees' Unions/ Associations and work out to arrive at a mutually agreeable wage settlement. The government has stressed the importance of fairness and equity in the revision, ensuring that the compensation struct

HDFC, IDFC mergers may not trigger consolidation of PSU banks: Analysts

There is more money to be made in PSBs as RoA expansion has peaked for private banks, analysts said

Nifty PSU Bank index surges nearly 4%; Canara, BoB, BoI, PNB rally up to 7%

In the past two trading days, the Nifty PSU Bank index has rallied 6 per cent

MSS certificate can be operationalised at PSBs, select private banks: Govt

The Mahila Samman Savings Certificate (MSSC) scheme offers a fixed interest rate of 7.5 per cent to women

TMS EP451: RBI repo rate pause, PSU banks, markets, Nvidia GPUs

Will today's pause by RBI lead to a pivot? Why are public sector banks under pressure? Markets factoring in most positives; what's next? Why are Nvidia GPUs so important? All answers here

RBI raises the governance premium for PSU banks on the road to 2047

The Governor of the RBI has for the first time provided a peek into the power structures within bank boards

RBI Governor addresses PSU banks' board members of on governance, ethics

Reserve Bank Governor Shaktikanta Das on Monday met the board of directors of all public sector banks to discuss issues related to governance and ethics. The one-day interactive meeting was organised by the Department of Supervision of the Reserve Bank of India. Das addressed the directors -- both whole time and independent -- on issues related to governance, ethics and the role of the boards in assurance functionalities of the banks, besides highlighting the supervisory expectations, sources said. Besides the governor, deputy governors, and executive directors from the Department of Regulation as well as Supervision also spoke in the meeting. During the event, directors, including the bank chairman, and nominee directors both from the central bank and the government were invited to interact with the entire RBI top brass. The government on the recommendation of the Reserve Bank introduced many reforms in governance and provided more autonomy to the board of public sector banks in

Public sector banks' total profit crosses Rs 1 trn-mark in 2022-23

Public sector banks' cumulative profit crossed the Rs 1 lakh crore-mark in the financial year ended March 2023, with market leader State Bank of India (SBI) accounting for nearly half of the total earnings. From posting a total net loss of Rs 85,390 crore in 2017-18, the Public Sector Banks (PSBs) have come a long way as their profit touched Rs 1,04,649 crore in 2022-23, according to an analysis of their financial results. These 12 PSBs witnessed 57 per cent increase in total profit compared to Rs 66,539.98 crore earned in 2021-22. In percentage terms Pune-based Bank of Maharashtra (BoM) had the highest net profit growth with 126 per cent to Rs 2,602 crore, followed by UCO with 100 per cent rise to Rs 1,862 crore and Bank of Baroda with 94 per cent increase to Rs 14,110 crore. However, in absolute term, SBI has reported an annual profit of Rs 50,232 crore in 2022-23, showing an increase of 59 per cent over the preceding financial year. Except for the Punjab National Bank (PNB), ot

FinMin wants PSBs to enhance recovery rate from written-off accounts to 40%

Worried over the low recovery rate from written-off accounts, the Finance Ministry has asked state-owned lenders to increase it to about 40 per cent, sources said. Currently, the recovery rate from written-off accounts is less than 15 per cent. Public sector banks (PSBs) could recover only 14 per cent of the written-off loans worth Rs 7.34 lakh crore in the last five years ended March 2022. Of Rs 7.34 lakh crore written-off loans, state-owned lenders recovered Rs 1.03 lakh crore. So after recovery, the net written-off stood at Rs 6.31 lakh crore at the end of March 2022. It seems that after the write off banks get complacent about recovery from those non-performing assets (NPAs), the sources said, adding, this level of recovery is not acceptable. Besides, they said, higher recovery from written-off accounts directly adds to their bottomline and improves their capital. To review the situation on the issue, the sources said, the Department of Financial Services would soon hold a mee

A week in a PSU banker's life

Pages from the diary of a banker that offer glimpses of his work and life

Bank of Maharashtra reports more than double profit to Rs 840 cr in Q4

State-owned Bank of Maharashtra (BoM) on Monday reported a more than two-fold jump in its net profit to Rs 840 crore for the March quarter, helped by a decline in bad loans and a rise in interest income. The bank had earned a net profit of Rs 355 crore in the year-ago period. During the quarter, the bank's total income increased to Rs 5,317 crore as against Rs 3,949 crore a year ago, BoM said in a regulatory filing. Interest income grew to Rs 4,495 crore during the period under review, from Rs 3,426 crore in the corresponding quarter a year ago. The bank's board has recommended a dividend of Rs 1.30 per share or 13 per cent of Rs 10 face value out of the net profits for the year ended March 31, 2023. Gross Non-Performing Assets (NPAs) were reduced to 2.47 per cent of gross advances as of March 31, 2023 from 3.94 per cent by the end of March 2022. Net NPAs also came down to 0.25 per cent of the advances from 0.97 per cent at the end of 2022. The fall in bad loans ratio helped cut

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 rally; Punjab & Sind, Uco Bank, Indian Bank surge up to 12%

At 02:23 pm, Nifty PSU Bank index, the top gainer among sectoral indices, was up 2.5 per cent