Public Sector Banks

Analysts expect capital buffers to remain strong across the banking sector. ICRA projects a 40–50 basis point increase in Tier-I capital ratios for PSBs this fiscal

PSU lenders’ average valuation surged 225% over five years on improved financials and asset quality

According to data compiled from 11 major PSU banks, their average price-to-book (P/B) ratio has jumped from 0.35 in March 2020 to 1.14 in July 2025.

Govt advises PSU banks to shut dormant Jan Dhan accounts to curb frauds: Report

The lenders have been told not to keep the accounts running if they are not being used as they could be misused

India’s push to monetise PSU bank subsidiaries may unlock most value at SBI

The finance ministry wants public sector banks to list their subsidiaries—but analysts say only a handful, led by State Bank of India, are IPO-ready

Centre prepares blueprint for up to 20% stake sale in 5 public sector banks: Report

The move is being planned to meet the Securities and Exchange Board of India’s (Sebi’s) minimum public shareholding norm, the newspaper said

Govt stake in banks can come down further as lenders may need more funds: Bank of India CEO

These comments came when the government last month approved fund-raising plans of up to Rs 10,000 crore for five PSBs through QIP, and additional stake sales via OFS

Finmin asks banks and insurance companies to expedite resolution of public grievances

The meeting, aimed to assess the quality of grievance redressal, reviewed 20 randomly selected public grievances resolved by PSBs and insurance companies to assess resolution quality, the finance ministry said in a statement.

India must focus on privatisation of banks, public sector enterprises: 16th Finance Commission chairman Arvind Panagariya

Government needs to get out of cycle of NPAs and recapitalisation, Panagariya said

Did Budget 2024 just add to the woes of PSU banks?

FM Sitharaman’s Budget lacked any major banking sector reforms, except some finetuning of the IBC process. It’s a missed opportunity

MFs expected to do the heavy lifting in upcoming QIPs of public sector banks

With Rs 28,000 crore of secondary market share sale lined up by five public sector banks, sources say domestic mutual fund houses may be the key participants in the capital raise plans

Public sector banks cut headcount by 11,154 in FY24

The number of employees was 19 percent lower in fiscal 2024 over fiscal 2023. Industry experts highlighted that increased digitisation at the lower level has led to the reduction, and more could follow.

PSU shares on fire, take key indices to record high as exit polls hint policy continuity

Stocks influenced by the government's economic agenda have risen sharply over the past year, and the trend is likely to continue.

No proposal to merge public sector banks, not aware of any such discussion: Official

Earlier on December 18, 2023, reports of a merger between Union Bank and UCO Bank, and Bank of India and Bank of Maharashtra emerged on social media, citing a government document

Lower-level employee hiring may slow for PSBs in FY25

RBI data showed that total employee strength at public sector banks fell to 7,56,644 in March 2023 from 8,42,813 in March 2014. Additionally, hiring at clerical level dropped in the last few years, though some argue this needs to be reversed given the rising pressure at the branch level.

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

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.

DFS Secy says 5 PSU banks to reduce govt shareholding to meet MPS norms

Out of 12 public sector banks (PSBs), four were complying with MPS norms as of March 31, 2023.

FM Nirmala Sitharaman asks PSBs to come out with attractive deposit schemes to mobilise funds

While expressing satisfaction at the improved performance of public sector banks, she cautioned the lenders that bank frauds pose a critical threat to the security of individual customers and financial institutions themselves, which can lead to financial losses and reduced public trust in the banking system.

At least eight Indian banks set to see new chiefs in 2024

In a majority of cases, the names have been finalised, while some are still awaiting a decision. While the top level positions are being filled, there appears to be a shortage of staff in a number of banks.

FM to meet heads of PSBs on Dec 30 to review progress of implementation of govt schemes

During a meeting with managing directors and CEOs of public sector banks (PSBs), Financial Services Secretary Vivek Joshi asked them to review the top 20 cases monthly for their resolution.

MC Interview | Dual control of PSBs by finance ministry & RBI is wrong: Montek Singh Ahluwalia

The veteran economist said that the ultimate responsibility of regulating a PSB, including removing the Chairman, if necessary, should rest with the RBI, as is the case with private banks.

Govt says 10 PSBs transferred NPAs of over Rs 11,617 crore to NARCL from Jan-Nov

These 10 PSBs had aggregate gross NPAs of over Rs 3.65 lakh crore as of September 30, 2023, as per the data shared by Finance Ministry to the Rajya Sabha.

PSBs wrote off Rs10.42 lakh crores of loans in last nine years, says Government

PSBs recovered an aggregate amount of Rs. 1.61 lakh crore from written-off loans.

Public sector banks get Rs 15,183 crore following ED action under PMLA: Sitharaman

Sitharaman informed the House that as of March 31, 2023, legal suits were filed for recovery against 13,978 loan accounts, action under the SARFAESI Act has been initiated in 11,483 cases, FIRs have been filed in 5,674 cases, and an aggregate amount of Rs 33,801 crore has been recovered.

BoB World app episode: Some public sector banks initiate digital app checks, say sources

The Reserve Bank of India, on October 10, directed Bank of Baroda to stop onboarding new customers through BoB World, the lender’s digital banking app, citing "certain material supervisory concerns.".

5-day week should be implemented for public sector banks: parliamentary panel member Modi

Sushil Kumar Modi, member of the parliamentary committee on finance, says the government can increase the working hours by half an hour per day from Monday to Friday.