Accenture is now helping align former Dena Banks IT systems with Bank of Baroda, a joint statement said on Monday. The merger of Vijaya Bank and Dena Bank with Bank of Baroda in 2019 created the country's third largest public sector bank.
Unless banks are given the freedom to decide on business decisions, banking sector NPAs can’t be addressed. In a highly competitive industry, PSBs need to be given a level playing field.
As part of the nearly Rs 21 lakh crore special economic package amid the COVID-19 crisis, Sitharaman announced Partial Credit Guarantee Scheme (PCGS) 2.0 worth Rs 45,000 crore for non-banking financial companies (NBFCs) and micro finance institutions (MFIs).
In a detailed advisory to the heads of all public sector banks, the Department of Financial Services (DFS) said it was necessary that the banks take appropriate measures to ensure productive use of their financial resources for core business activities.
Private sector banks reward employees based on performance linked compensation models specific to individual institutions. As against this, traditionally, salary of a PSB employee is decided through negotiations between the IBA (Indian Banks Association) and trade unions negotiations once in every five years.
FM Nirmala Sitharaman was reviewing the progress of the Rs 3 lakh crore Emergency Credit Guarantee Scheme for MSMEs
With the lockdown coming into effect from March 25, state-owned banks opened an additional line of credit of 10 percent of the existing fund based on working capital limits, subject to a maximum of Rs 200 crore.
For credit flow to remain smooth, public-sector banks need to be recapitalised adequately or issue a promise of capital, so that the banks are able to provide for the impending surge in NPAs
Demands of the banking sector include strengthening of PSBs, more bank branches in unbaked and rural areas, no privatisation and no shutting down of bank branches.
Between April and September this year, as many as 5,743 cases of fraud were reported.
The former Union minister's remarks came after Banerjee, at a media interaction earlier in the day, termed the banking crisis in the country "frightening" and called for reduction of government stake in public sector banks to deal with the situation.
In order to ensure liquidity for small businesses, Sitharaman said banks have been asked to provide bill discounting facility to the MSME sector against payments due from the large corporates
As the rates go down, depositors tend to lock in at longer maturities in anticipation of more cuts.
Interest rates, both lending as well as deposits, are on their way down. However, a different trend is being seen in the case of PSBs.
The Indian banking system is dominated by public sector banks and these reforms will have an impact on the entire industry.
Merging weaker banks with stronger ones will erect a protective ring for depositors and shareholders.
The consolidated bank will have the second largest branch network in India hereafter, with 11,437 branches.
Chief executives of ten PSBs have been called for a meeting on August 30 by the finance ministry's department of financial services.
This difference in total daily remuneration has widened by about Rs 70,000 since FY17, when it was Rs 1.7 lakh. For instance, India’s largest bank, the State Bank of India (SBI) paid its chairman Rajnish Kumar Rs 8,092 per day in FY19, as compared to Rs 3.74 lakh that HDFC Bank Ltd, India’s largest private bank, paid its CEO Aditya Puri in FY19.
While Yes Bank fund raising may have helped in restoring confidence in the banking sector to some extent, the story may vary for other lenders, especially state-run banks.
This despite improvement in asset quality, with a decline in the number of non-performing assets
The governor gave "impetus to resolution of stresses assets facilitated by revised framework for resolution," the RBI said in a statement.
Banking nationalisation continues to cast a long shadow over Indian political economy even 50 years after the fateful day it was signed into a law. Given the political realities of India, it will continue to be relevant even 50 years from now.
The Finance Minister said she hoped normalcy in the NBFC space would be restored in six to seven months’ time and that the RBI should see NBFCs quickly address the problems
The latest fund injection is part of the government’s road map to adequately bolster the state-owned banks’ capital base.