PSU banks step up branch review for adequate cash, safety guidelines

Banks

As tensions between India and Pakistan escalate, state-owned banks have started a daily review of branches for cash availability, safety of employees and if local guidelines are being adhered to, senior bankers have told Moneycontrol.

A banker with the one of the large state-owned bank said the management has informed asked all branches in the border areas to follow the guidelines issued by the local administration and defene authorities.

Another banker said the bank is keeping more cash in the branches and in the ATM machines across India, especially in border areas, to avoid inconvenience to the customers.

Though it is business as usual and there are no panic withdrawal but banks are ready to deal with any situation.

All the bankers spoke to Moneycontrol on condition of anonymity.

Jammu & Kashmir (J&K), Punjab, Rajasthan, Gujarat, and Himachal Pradesh together accounted for 12.81 percent of India’s total bank deposits at Rs 26.21 lakh crore and 13.41 percent of all advances at Rs 22.13 lakh crore as of March 2024, latest Reserve Bank of India (RBI) data shows.

The union territory of Jammu and Kashmir, which is at the centre of the conflict, shares a 3,323 km frontier with Pakistan, including the volatile Line of Control (LoC).

J&K’s banks have deposits of Rs 1.49 lakh crore, which account for 0.73 percent of the country’s deposits, and advances of Rs 73,879 crore, which is 0.45 percent of the national figure.

Public sector giants such as State Bank of India and cooperative banks such as the Jammu and Kashmir State Co-operative Bank serve urban hubs such as Srinagar and Jammu and rural areas.

Major banks such as Punjab National Bank and regional rural lenders like Punjab Gramin Bank facilitate credit for wheat and rice farmers and small industries in Ludhiana and Jalandhar.

An official with another large PSU bank said the bank has beefed cybersecurity and asked employees to not click of any unauthorised links and report them to the IT department.

All the PSU banks have ramped up vigil in past few days. Some of the banks have assigned employees in shifts for a round-the-clock check.