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Public Sector Banks PSBs
The government is unlikely to announce capital infusion for public sector banks (PSBs) in the upcoming Budget as their financial health has improved significantly and they are on track to earn a combined profit of Rs 1 lakh crore, sources said. Their capital adequacy ratio is much above the regulatory requirement and varies between 14-20 per cent. To augment their resources, banks are raising growth funds from the market and also by selling their non-core assets, they added. The government last provided capital support to banks in 2021-22. It had earmarked Rs 20,000 crore for recapitalisation of PSBs through supplementary demands for grants. The government infused Rs 3,10,997 crore to recapitalise banks during the last five financial years i.e., from 2016-17 to 2020-21, out of which Rs 34,997 crore were sourced through budgetary allocation and Rs 2,76,000 crore through issuance of recapitalisation bonds to these banks. Finance Minister Nirmala Sitharaman is scheduled to present th
The amalgamation of public sector banks has helped in improving customer services and creating strong banks, Minister of State for Commerce and Industry Som Parkash said on Wednesday. In a written reply to a question in the Lok Sabha, the minister said the objective of amalgamation of the banks was to facilitate consolidation among PSBs to create "strong and competitive banks" capable of achieving economies of scale and realisation of synergy benefits with wider product and service offering to customers. "As a result of this effort, customers of amalgamated banks received access to increased number of branches and ATMs from which they can now avail banking services. Customers have also received access to a larger bouquet of products and services," he said. The amalgamation also enhanced their lending capacity for loans of a larger size and has also enabled banks to open/reorganise, controlling offices and processing centres, equipping them for better customer serving, Parkash ...
India needs 'fewer' but stronger Public Sector Banks (PSBs), and the smaller ones could be privatised or merged, former SBI chief Arundhati Bhattacharya has said. Bhattacharya further said much of the goals that are expected to be achieved through privatisation of PSBs can also actually be achieved by enabling the state-owned banks and by levelling the playing field. "The thing is, privatisation has never been the answer to all the ills," she told PTI while responding to a question on former RBI governor D Subbarao's suggestion that the government should come up with a 10-year road map for privatisation of all PSBs. Subbarao had recently suggested that the government should come up with a 10-year road map for privatisation of all PSBs as it would provide much needed predictability to stakeholders. "I don't really believe that we need so many public sector banks either, the number of PSBs could be decreased. "Some of them could be privatised. And maybe you know, the stronger ones c
Finance Minister Nirmala Sitharaman is scheduled to meet heads of public sector banks and financial institutions later this month to review progress of various government schemes aimed at welfare and upliftment of scheduled castes. Schemes like Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY), and Credit Enhancement Guarantee Scheme for Scheduled Castes (SCs) and their progress would be discussed during the meeting, sources said. The meeting would review the performance of public sector banks (PSBs) and financial institutions to provide credit to people belonging to the SC community and other welfare measures under implementation, they said. The meeting, to be chaired by the Finance Minister, would see participation from chairman of National Commission for Scheduled Castes (NCSC), financial services secretary and other senior officials. The Stand-Up India scheme was launched in 2016 to promote entrepreneurship among the scheduled caste/ scheduled tribe and women by facilitating b