"Our credit appraisal system is a problem. Hence the risk framework is the need of the hour," Chakrabarty said.
More than 1,400 employees of the bank were transferred.
It also said that private sector banks and large public sector banks would benefit from early signs of macro revival, enabling them to start the credit growth trajectory.
Rationalisation could be in terms of consolidation of operations, trimming of staff strength, exiting some of the non-core and non-profit activities or closing down some of the unviable overseas offices.
Government banks have suggested reduction in corporate tax rate by 5 percent, lowering of MAT rate to 15% and enhancing tax deductions and exemptions for individuals in the upcoming Union Budget.
The 21 PSBs have about 1.25 lakh branches and the six state-owned insurance companies have presence across the country.
To facilitate consolidation in the public sector banking space, the Cabinet in August gave in-principle approval for PSBs to amalgamate through an Alternative Mechanism.
SBI Deputy MD Prashant Kumar says the bank will focus on special skills for jobs, but succession planning, missing middle are big challenges.
For the audit done by the RBI during FY2017 for the asset quality as on March 31, 2016, banks reported a combined divergence of a massive Rs 43,500 crore, against their reported gross NPAs of Rs 5.92 lakh crore.
Bankers will soon act on the 28 defaulters identified in Reserve Bank of India's second list and haul them to the National Company Law Tribunal (NCLT) for resolution under the Insolvency and Bankruptcy Code (IBC).
Bankers are struggling to find out-of-court resolutions and will soon move involvency courts by this year end to file cases worth over Rs 1.5 lakh crore
Most banks are preferring the Qualified Institutional Placement (QIP) route, sources said, adding that Punjab National Bank (PNB) would be the first to hit the market to raise Rs 5,000 crore. Bank of Baroda, Bank of India, Union Bank of India Allahabad Bank and Andhra Bank are also gearing up for the share sale, they said.
Additional NPAs grew the highest in March 2016 at Rs 1.39 lakh cr over Dec 2015 quarter and the second highest in June 2017 over March 2017 quarter at Rs 1.17 lakh cr
Most public and private sector banks mention in their agreement clause while filling the application form to rent a locker facility that the banks are not responsible for any loss or damage to the contents of a locker
Experts suggest upgradation of security and alarm systems, fresh guidelines and safety procedures to battle the intelligent techniques of robbers and criminals.
The staff strength has come down to 2,69,219 staff as on September 2017 compared to 2,79,803 as on March 2017.
Banks had put up approximately Rs 30,000 crore worth of assets for sale during the six months period starting April, of which banks have managed to sell just about Rs 5,000-6,000 crore to ARCs
The recapitalisation plan means banks now have more cash in their pockets in order to provide for more loans.
With banks burdened with a spike in bad loans and shortage of capital availability, the government may push the RBI to help them in meeting capital requirements.
In an attempt to promote interoperability in the usage of prepaid payment instruments (PPIs), the RBI directed all financial companies to make KYC-compliant PPIs interoperable within the next six months
Even as the senior-level placements for public sector banks are underway, the government has approved the appointment of nine executive directors, according to reports.
The advisor also said that the government has various options in mind to sort out the banking mess, including recapitalization and diluting the government’s stake
Public sector banks are cut out for major tasks of growth and profitability despite weak demand and slowing economy even as they grapple with bad loan resolutions and the consolidation process, feel bankers.
This comes a day after Union Transport Minister Nitin Gadkari pulled up banks for delaying financing towards the roads sector despite several clearances and faster movement of the projects.
The ratings agency has estimated that Indian banks will need USD 65 billion as additional capital to meet Basel III requirements by 2019 with state banks requiring more than 90 percent.