Why public sector banks may post lower bad loans than private sector peers in FY25
PSBs have implemented stricter loan disbursement practices, ensuring that corporate loan disbursements are contingent upon meeting predefined terms.
PSBs have implemented stricter loan disbursement practices, ensuring that corporate loan disbursements are contingent upon meeting predefined terms.
These banks include UCO Bank, Central Bank of India, Punjab & Sind Bank, Bank of Maharashtra, and Indian Overseas Bank, with public shareholdings ranging from 1.75% to 13.54%.
Catch Rajesh Ram, CDO, Bank of India as he gives his two cents on the innovation in banking sector, also propelled by the needs exhibited by users across demographics & geographies.
The proposal to offer employee stock ownership plans or ESOPs, has been on the backburner for a while but it may advance after the Lok Sabha polls, said people familiar with the development. “There have been talks with government last month on issues pertaining to PSBs, including ESOPs,” abank executive said, adding that lenders will soon present a framework to the government.
A recent report by Emkay Global Financial Services analysed the branch expansion of Indian banks over the past five years and asserted, that while 'digital' is a must today, bank branches still remain the soul to retail deposit mobilization. In FY23, approximately 3386 branches were added by private sector banks while only 148 branches were added by PSBs.
PSBs are projected to pay a dividend exceeding Rs 15,000 crore for FY24 due to increased profitability. The RBI is proposing new rules for dividend declarations based on NNPA ratios and total capital adequacy.
Certain bank branches will be open on March 31 for government transactions. Agency Banks designated by RBI will handle operations. Income Tax Offices open on March 29th-31st for pending tasks.
Another banker said the government has been pushing state-run banks to collaborate on various initiatives, such as a common PSB cloud, common e-auction platform eBkray and a common agricultural collateral onboarding and monitoring platform. "The roadmap will also touch on these issues and the banks' strategy to coordinate with other banks, security agencies and regulatory bodies," the executive said.
There have been instances where life insurance policies were sold to customers aged above 75 years in tier-II and III cities. Usually, banks push products of their subsidiary insurers.
The business plans will cover strategies to increase low-cost deposits, raise capital, resolve bad loans, improve cybersecurity and undertake financial inclusion outreach, said a senior government official.
17% wage hike approved for 1.10 lakh LIC employees from August 1, 2022. NPS contribution increased to 14% for post-April 1, 2010 joiners. Government provides ex-gratia payment to over 30,000 pensioners. Bank employees' raise approved from November 1, 2022.