Govt loses 23 paise on each Re of taxpayer money used in PSBs
4 years, 11 months ago

Govt loses 23 paise on each Re of taxpayer money used in PSBs

India TV News  

Each rupee of taxpayers' money invested by the government in NPA-heavy public sector banks as equity are resulting in a loss of 23 paise. In 2019, every rupee of taxpayer money invested in PSBs, on average, lost 23 paise," the Economic Survey 2020 said. Compared to this, every rupee of investor money invested in "New Private Banks" - banks licensed after India's 1991 liberalisation - on average, gained 9.6 paise. The PSBs account for 85 per cent of reported bank frauds while their gross non-performing assets equal Rs 7.4 lakh crore which is more than 150 per cent of the total infrastructure spend in 2019. "The market-to-book ratio, which indicates the quality of a bank's governance, is 0.8 as on 20th January, 2020 for PSBs while that of the average NPB is close to 4," the Economic Survey said.

Money Taxpayer Money Npb Psbs 23 Paise  loses  economic  psbs  used  rupee  govt  23  rs  invested  banks  taxpayer  survey  paise  money

History of this topic

Indian banks’ profitability improves for six straight years, NPAs decline to 13-year low: RBI report
2 weeks, 6 days ago

Indian banks’ profitability improves for six straight years, NPAs decline to 13-year low: RBI report

Live Mint  

The profitability of banks improved for the sixth consecutive year in 2023-24 and their gross bad debts or non-performing assets declined to a 13-year low of 2.7 per cent. "Banks’ profitability rose for the sixth consecutive year in 2023-24 and continued to rise in H1:2024-25 with the return on assets at 1.4 per cent and return on equity at 14.6 …

PSB’s Record 26% Profit Growth in First Half FY25
2 months ago

PSB’s Record 26% Profit Growth in First Half FY25

Deccan Chronicle  

New Delhi: The finance ministry on Tuesday said that public sector banks have shown robust performance in the first half of the current fiscal year with a 26 per cent growth in net profit, increase in business and decline in non-performing assets. During the first six months of FY25, the finance ministry also said that the credit and deposit portfolio …

Government to Focus on Professionalism, Professionalism of PSUs for Value Creation
2 months, 2 weeks ago

Government to Focus on Professionalism, Professionalism of PSUs for Value Creation

Live Mint  

The Indian government plans to make public sector units (PSUs) more efficient, professional and profitable in the long term rather than sell them early. The focus is on getting them more professionally run, so that their decisions be more board-driven, across sectors, irrespective of whether it is in the strategic or the non-strategic.

FM Asks PSBs to Focus on Core Business, Deposits
4 months, 3 weeks ago

FM Asks PSBs to Focus on Core Business, Deposits

Deccan Chronicle  

New Delhi: Union finance minister Nirmala Sitharaman on Monday asked all the heads of public sector banks to focus on core banking business and speed up the pace of deposit growth by introducing innovative products. “The finance minister reviewed the financial performance of banks and progress made in the implementation of various flagship schemes of the government, including PM Awas …

CPSEs hold a divestment potential of Rs 11.5 lakh crore
6 months, 1 week ago

CPSEs hold a divestment potential of Rs 11.5 lakh crore

Deccan Chronicle  

Chennai: The government has a divestment potential of Rs 11.5 lakh crore in central public sector companies, public sector banks and insurance companies at the current market capitalization. CareEdge’s analysis based on 59 major listed CPSEs and 15 listed PSBs aånd insurance companies where the government holds more than a 51 per cent stake, finds that the government can achieve …

PSU banks count on new coalition government for more lucrative PLI for employees
7 months ago

PSU banks count on new coalition government for more lucrative PLI for employees

Hindustan Times  

PSU banks are hopeful of a more lucrative performance-linked incentive for employees as a new coalition government takes charge, the Economic Times reported. “Some of the parameters governing the PLI, like the final settlement, should not be only based on operating profit, but take into account performance on other financial parameters,” another bank executive told the Economic Times. "While banks …

Banks should improve corporate loans, keep deposit base healthy
7 months, 3 weeks ago

Banks should improve corporate loans, keep deposit base healthy

New Indian Express  

For the first time ever, the cumulative net profits of Indian banks surpassed Rs 3 lakh crore in 2023-24, up from Rs 2.3 lakh crore in 2022-23. While the 26 private lenders’ net profits shot up 42 percent to Rs 1.78 lakh crore, the 12 public sector banks reported net profits of Rs 1.41 lakh crore in 2023-24, a 34 …

Over ₹10 lakh crore under its watch, NPS to ease withdrawal options
1 year, 4 months ago

Over ₹10 lakh crore under its watch, NPS to ease withdrawal options

The Hindu  

State governments that have ostensibly opted out of the National Pension System for their employees and have reverted to the Old Pension Scheme that guaranteed 50% of final salary as monthly pension, continue to remit due contributions to the NPS corpus. State government employees account for the largest chunk of the savings pool which crossed ₹10 lakh crore on August …

Profit of PSU banks more than doubles to Rs 34,774 cr in Q1
1 year, 5 months ago

Profit of PSU banks more than doubles to Rs 34,774 cr in Q1

India TV News  

Public sector banks have once again posted stellar performance by registering more than double profit of Rs 34,774 crore for the first quarter ended June 2023. SBI's highest-ever quarterly profit of Rs 16,884 crore is about 50 per cent of the total profit earned by PSBs. During FY23 too, SBI's contribution was about 50 per cent, when the cumulative profit …

Net profit of PSBs almost tripled to ₹1.04 lakh in FY2022-23: FM Sitharaman
1 year, 6 months ago

Net profit of PSBs almost tripled to ₹1.04 lakh in FY2022-23: FM Sitharaman

Live Mint  

Finance Minister Nirmala Sitharaman on Saturday appreciates the state-run banks for becoming profiteering. According to the union Finance Minister, the net profit of public sector banks has almost tripled to ₹1.04 lakh crore in fiscal 2022-23. "The Non-Performing Assets of the Indian banks is estimated to reduce further to a decadal low of 3.8% by end of FY 2023-24," Sitharaman …

Nirmala Sitharaman praises PSBs, says 'profit tripled to Rs 1.04 lakh in nine years'
1 year, 6 months ago

Nirmala Sitharaman praises PSBs, says 'profit tripled to Rs 1.04 lakh in nine years'

India TV News  

Finance Minister Nirmala Sitharaman stated on Saturday that the profit of public sector banks has tripled to Rs 1.04 lakh crore over the past nine years as a result of government initiatives. Public sector banks net profit nearly tripled from Rs 36,270 crore in FY2014 to Rs 1.04 lakh crore in FY23. They should follow best corporate governance practices, adhere …

Banks write off loans worth Rs 11.17 lakh crore in last 6 years
2 years ago

Banks write off loans worth Rs 11.17 lakh crore in last 6 years

Deccan Chronicle  

NEW DELHI: Banks have written off Rs 11.17 lakh crore bad loans from their books in the last six years till financial year 2021-22, Parliament was informed on Tuesday. "As per RBI data, public sector banks and scheduled commercial banks wrote off an aggregate amount of Rs 8,16,421 crore and Rs 11,17,883 crore respectively during the last six financial years," …

Centre unlikely to announce capital infusion for PSU banks in Budget 2022-23
3 years, 1 month ago

Centre unlikely to announce capital infusion for PSU banks in Budget 2022-23

Firstpost  

Finance Minister Nirmala Sitharaman is expected to present the fourth budget of the Modi 2.0 government on 1 February New Delhi: The government is unlikely to announce capital infusion for public sector banks in the upcoming Budget, as their financial health has improved on the back of reduction in bad loans, sources said. During the last financial year, PSBs raised …

PSU banks mobilise record fund of ₹58,700 crore from markets in FY21
3 years, 5 months ago

PSU banks mobilise record fund of ₹58,700 crore from markets in FY21

Live Mint  

Notwithstanding economic disruptions caused by the pandemic, public sector banks have managed to raise a record ₹58,700 crore from markets in FY2020-21 through a mix of debt and equity to enhance capital base. Punjab National Bank mobilised ₹3,788 crore through share sale on private placement basis during the financial year ended March 31, 2021. In addition, 12 PSBs raised funds …

Banks NPAs decline to Rs 8.34 lakh cr at March-end 2021, junior finance minister informs Lok Sabha
3 years, 5 months ago

Banks NPAs decline to Rs 8.34 lakh cr at March-end 2021, junior finance minister informs Lok Sabha

Firstpost  

Scheduled commercial banks were carrying NPAs worth Rs 8.96 lakh crore on their balance sheet at the end of March 2020 New Delhi: Non-performing assets or bad loans of banks have declined by Rs 61,180 crore to Rs 8.34 lakh crore at the end of March 31, 2021, as a result of various steps taken by the government, Minister of …

Rs.1.53 lakh crore bad loan write-off gives a facelift to banks’ NPA profile
3 years, 7 months ago

Rs.1.53 lakh crore bad loan write-off gives a facelift to banks’ NPA profile

New Indian Express  

Explaining the trend of bad loans, Care Ratings chief economist Madan Sabnavis said that banks' gross NPAs increased sharply by 43.7 per cent from Rs. But after FY18, the NPAs saw moderation and reached Rs 8.9 lakh crore by end of March 2020 driven by large share of write-offs and lower slippages. Over the last couple of years, public sector …

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address
3 years, 11 months ago

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address

News 18  

With the Union Budget due to be presented on Monday, stakeholders in the banking sector expect the Centre to go beyond recapitalisation of bonds to infuse capital in public sector banks. The RBI’s stress test recently revealed that bank NPAs could jump from 7.5 per cent in September last year to 13.5 per cent by September this year. The gross …

Economic Survey 2021: Under-Capitalisation of Banks Will Hamper Economic Growth in Long Run
3 years, 11 months ago

Economic Survey 2021: Under-Capitalisation of Banks Will Hamper Economic Growth in Long Run

News 18  

The Economic Survey 2021, released on January 29 ahead of the Union Budget 2021, has called for adequate capitalisation of public sector banks flagging fears of lenders resorting to risk-shifting, which will, in turn, impact the economy which has just begun its upward rise months after the crippling impact of the Covid-19 pandemic. Public sector banks account for 60 per …

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address
3 years, 11 months ago

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address

News 18  

With the Union Budget less than a week away, stakeholders in the banking sector expect the Centre to go beyond recapitalisation of bonds to infuse capital in public sector banks. The RBI’s stress test recently revealed that bank NPAs could jump from 7.5 per cent in September last year to 13.5 per cent by September this year. The gross non-performing …

RBI Raises Concerns Over Zero-coupon Bond for PSB Recapitalisation, Talks on With Govt for Solution
4 years ago

RBI Raises Concerns Over Zero-coupon Bond for PSB Recapitalisation, Talks on With Govt for Solution

News 18  

New Delhi: The Reserve Bank of India has expressed some concerns over zero-coupon bonds for the recapitalisation of public sector banks and discussion is on between the central bank and Finance Ministry to find a solution, according to sources. The government resorted to recapitalisation bonds with a coupon rate for capital infusion into PSBs during 2017-18 and interest payment to …

The battle to save banks
4 years, 3 months ago

The battle to save banks

India Today  

The battle for saving banks has been a long drawn one. Speaking at the seventh SBI Banking and Economics Conclave in July, RBI governor Shaktikanta Das said: “The economic impact of the pandemic due to the lockdown and the anticipated post-lockdown compression in economic growth may result in higher NPAs and capital erosion of banks. A recapitalisation plan for PSBs …

Banks' NPAs in Large Industry, Services Fall 31 per cent in Over Two Years to Rs 4.36 Lakh Crore
4 years, 4 months ago

Banks' NPAs in Large Industry, Services Fall 31 per cent in Over Two Years to Rs 4.36 Lakh Crore

News 18  

Banks' non-performing assets in large industry and services declined 31 per cent in over two years to about Rs 4.36 lakh crore in June this year, Parliament was informed on Monday. "As per Reserve Bank of India data on domestic operations, NPAs of scheduled commercial banks pertaining to large industry and services have come down to Rs 4,36,492 crore as …

Govt Seeks Parliament Nod for Rs 20,000 Crore Capital Infusion in Public Sector Banks
4 years, 4 months ago

Govt Seeks Parliament Nod for Rs 20,000 Crore Capital Infusion in Public Sector Banks

News 18  

The government on Monday sought Parliament’s approval for infusing Rs 20,000 crore in public sector banks in the current financial year to meet regulatory requirements. “For meeting expenditure towards recapitalisation of Public Sector Banks through issue of Government Securities” the government has asked for Parliament’s authorisation of Rs 20,000 crore, as per a document. In 2019-20, the government proposed to …

Bad loans of PSBs fall to ₹7.27 lakh crore at end of Sept 2019: Sitharaman
4 years, 11 months ago

Bad loans of PSBs fall to ₹7.27 lakh crore at end of Sept 2019: Sitharaman

Live Mint  

New Delhi: Finance Minister Nirmala Sitharaman on Monday said public sector banks' bad loans came down to ₹7.27 lakh crore at the end of September 2019, on host of measures taken by the government to improve financial health of the banks in the country. "The government has instituted comprehensive reforms in PSBs to improve, governance, underwriting, monitoring and recovery, and …

NPAs of public sector banks stand at ₹7.27 lakh crore as on H1FY20: Govt
4 years, 11 months ago

NPAs of public sector banks stand at ₹7.27 lakh crore as on H1FY20: Govt

Live Mint  

New Delhi: The government on Monday said the Non Performing Assets of Public Sector Banks stood at ₹7.27 lakh crore as on September 30, 2019. Union Minister of State for Finance Anurag Thakur also said in Lok Sabha that scheduled commercial banks and select financial institutions have reported frauds to the tune of ₹1,13,374 crore in the first half of …

Strategic sale in 5 PSUs: Govt’s messed up fiscal math has just got a major face-saver; privatisation drive positive for economy
5 years, 1 month ago

Strategic sale in 5 PSUs: Govt’s messed up fiscal math has just got a major face-saver; privatisation drive positive for economy

Firstpost  

The stake will be brought down in select PSUs to 51% while retaining the management control on a case-to-case basis, the government said. One of the key prerequisites for any country aspiring for sustainable economic development—government’s firm willingness to cede control in public sector undertakings and bring in more private participation—is finally taking place in growth-starved Indian economy. In a …

Private banks stay in profit, PSBs return to losses
5 years, 1 month ago

Private banks stay in profit, PSBs return to losses

Deccan Chronicle  

Mumbai: Banks reported better-than-expected earnings for the September quarter, with many showing an improvement in operational performance and marginal deterioration in asset quality. While the asset quality of the public sector banks showed improvement, they recorded a net loss during Q2FY20 after having recorded a net profit in the first quarter of FY20. The net profit of the private banks …

PSU banks extend Rs 2.56 lakh cr support to stressed NBFCs by credit, pooled buyout since September 2018
5 years, 2 months ago

PSU banks extend Rs 2.56 lakh cr support to stressed NBFCs by credit, pooled buyout since September 2018

Firstpost  

Under the partial guarantee scheme, PSU banks have been accorded sanction to purchase Rs 21,580 crore worth of pooled assets as on 16 October New Delhi: The finance ministry on Thursday said public sector banks have extended support of Rs 2.56 lakh crore to NBFCs by way of credit and pooled buyout since September 2018 as part of efforts to …

PSBs NPAs down to ₹7.9 trillion at the end of March 2019
5 years, 4 months ago

PSBs NPAs down to ₹7.9 trillion at the end of March 2019

Live Mint  

New Delhi: The performance of India’s public sector banks has improved with the improvement in asset quality helping in bringing the non performing assets to ₹7.9 trillion at the end of March 2019, said finance minister Nirmala Sitharaman on Friday. On last Friday, finance minister Nirmala Sitharaman also announced a slew of measures to stoke demand, including a rejig of …

Budget 2019: Government likely to allot Rs 30,000 crore to PSU banks
5 years, 6 months ago

Budget 2019: Government likely to allot Rs 30,000 crore to PSU banks

India Today  

The government is likely to allot Rs 30,000 crore to public sector banks in the upcoming full budget 2019 as they have been struggling to meet the minimum regulatory capital requirement. Newly appointed finance minister Nirmala Sitharaman, who will be presenting the full budget on July 5, is expected to make an announcement about the provision-a move experts feel is …

Govt keen on amalgamation of PSBs to create globally competitive, healthy large banks: Arun Jaitley
5 years, 10 months ago

Govt keen on amalgamation of PSBs to create globally competitive, healthy large banks: Arun Jaitley

Firstpost  

Jaitley said the NPA situation of PSU banks has improved in the last 2-3 quarters and the NDA government has ended the practice of “phone banking” New Delhi: The government is following the policy of amalgamating public sector banks to create healthy large banks which are globally competitive, finance minister Arun Jaitley said Thursday. He said the NPA situation of …

Finance ministry expects three to four more lenders to come out of Reserve Bank's PCA framework this year
5 years, 10 months ago

Finance ministry expects three to four more lenders to come out of Reserve Bank's PCA framework this year

Firstpost  

The recent capital infusion of Rs 48,239 crore in 12 PSBs will help Corporation Bank and Allahabad Bank to come out of the PCA framework in the next few weeks New Delhi: The finance ministry expects three to four more lenders to come out of weak bank list of the Reserve Bank in the next six to eight months on …

Govt announces Rs 48,239 cr recapitalisation plan for 12 public sector banks
5 years, 10 months ago

Govt announces Rs 48,239 cr recapitalisation plan for 12 public sector banks

India TV News  

In order to help maintain regulatory capital requirements and finance growth plans, the finance ministry on Wednesday announced to pump in Rs 48,239 crore in 12 public sector banks. The government will infuse Rs 9,086 crore in Corporation Bank and Rs 6,896 crore in Allahabad Bank -- the two "better-performing" banks currently under the Prompt Corrective Action supervision of the …

PSU' contribution to central exchequer falls 3% to Rs 3.5 lakh cr in FY'18: Survey
6 years ago

PSU' contribution to central exchequer falls 3% to Rs 3.5 lakh cr in FY'18: Survey

Firstpost  

In 2016-17, CPSEs’ contribution to the exchequer stood at Rs 3,60,815 crore. New Delhi: The contribution of state-owned firms to the central exchequer by way of excise duty, customs duty, GST, corporate tax, dividend and others fell 2.98 percent to Rs 3,50,052 crore in 2017-18, according to a survey tabled in Parliament Thursday. The dividend declared or paid by such …

PSU banks set to get ₹28,615 crore capital infusion
6 years ago

PSU banks set to get ₹28,615 crore capital infusion

Live Mint  

New Delhi: The government is likely to infuse ₹ 28,615 crore into seven public sector banks through recapitalisation bonds by the end of this month, sources said on Thursday. Out of the seven state-owned banks, Bank of India is likely to get the highest amount of ₹ 10,086 crore, followed by Oriental Bank of Commerce, which might get ₹ 5,500 …

Why govt is upping the ante on PSU bank recapitalisation plan
6 years ago

Why govt is upping the ante on PSU bank recapitalisation plan

Live Mint  

When finance minister Arun Jaitley presented the budget for 2018-19, he allocated ₹ 65,000 crore to recapitalise public sector banks. Late last week, the PSU bank recapitalisation outlay was increased by a little over 63% to ₹ 1.06 trillion. Of this, ₹ 8,247 crore has gone to Punjab National Bank, the second-largest PSU bank in India. The Reserve Bank of …

Govt seeks ₹41,000 crore more for bank recapitalisation
6 years ago

Govt seeks ₹41,000 crore more for bank recapitalisation

Live Mint  

New Delhi/Mumbai: The government on Thursday sought Parliament’s approval for supplementary grants worth ₹ 41,000 crore to infuse fresh capital into ailing state-run banks in the current fiscal. With the additional ₹ 41,000 crore of capital infusion by 31 March, the government will be infusing a total ₹ 83,000 crore into public sector banks this year. “This entire exercise will …

Public sector banks recover bad loans worth Rs 2.33 lakh cr in 4 years to FY18: Shiv Pratap Shukla
6 years, 1 month ago

Public sector banks recover bad loans worth Rs 2.33 lakh cr in 4 years to FY18: Shiv Pratap Shukla

India TV News  

During the four years from the financial year 2014-15 to fiscal 2017-18, public sector banks recovered Rs 2.33 lakh crore worth of bad loans, Centre informed Parliament on Friday. In a written reply in Lok Sabha, Minister of State for Finance Shiv Pratap Shukla said, as per RBI data on global operations for PSBs, during the financial years 2014-15 to …

Govt mulls additional Rs 30,000 cr capital infusion in PSBs; several banks' NPA rises during two quarters
6 years, 1 month ago

Govt mulls additional Rs 30,000 cr capital infusion in PSBs; several banks' NPA rises during two quarters

Firstpost  

Despite this relaxation, PSBs need more funds to meet global capital norms called Basel III as the RBI has retained the CRAR at 9 percent. New Delhi: The government is considering additional capital infusion of up to Rs 30,000 crore in public sector banks as they have been unable to raise required funds from the markets, sources said. As part …

RBI annual report 2017-18: Central bank says lenders will witness further deterioration in NPAs in FY19
6 years, 4 months ago

RBI annual report 2017-18: Central bank says lenders will witness further deterioration in NPAs in FY19

Firstpost  

The combined impact of the increase in provisioning against NPAs and mark-to-market treasury losses on account of the hardening of yields eroded the profitability of banks, resulting in net losses, RBI report said New Delhi: Reserve Bank of India said on Wednesday that banks will witness further deterioration in their non-performing assets or bad loans due to the “economic situation …

Punjab National Bank posts Rs 940 crore loss for first-quarter on fraud-related provisions
6 years, 5 months ago

Punjab National Bank posts Rs 940 crore loss for first-quarter on fraud-related provisions

Firstpost  

PNB in February said it had been defrauded by two jewellery groups that raised more than $2 billion credit overseas using fake guarantees. Troubled Punjab National Bank reported its second consecutive quarter of loss, as the country’s second-biggest state-run lender set aside more funds for a massive fraud it disclosed earlier in the year. Mumbai-traded PNB, the fourth-biggest bank by …

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