There would be no retrenchment of employees and that their services conditions would also not be affected post merger.
The year 2014-15 could well go as one of long-pending financial sector reforms, expected to have a lasting impact.
There is a need for real-time or near real-time credit reporting, instead of the current fortnightly system, to improve underwriting precision, enable timely reflection of borrower actions such as loan closures or repayments, and deliver a superior consumer experience, Deputy Governor of the Reserve Bank of India (RBI), M Rajeshwar Rao said on Wednesday.
'So far as supervision is concerned, there are enough powers but to take action on public sector banks, consultation with the government is needed.'
Also on agenda is rising credit flow to MSMEs & farm sector.
'Amaravati will be a game changer for Andhra Pradesh.'
The financial sector will have reason to cheer in the next few months, says the government
Some lenders in talks with LIC for pvt placement
Restoring the bank to its former glory will be the top priority for Vijayalakshmi Iyer, the seasoned banker who took over as chairperson and managing director of the Mumbai-based bank last month.
It's been bright times for banking sector stocks, ever since the passage of the Securitisation Act in November 2002.
Gross NPAs of public sector banks were Rs 41,378 crore (Rs 413.78 billion) in March 2006, which came down to Rs 38,305 crore (Rs 383.05 billion) in March 2007 because of better economic environment.
Govt renews search for five PSU bank chiefs; norms relaxed.
Breaking his silence after nine years, Vijay Mallya said he may return to India if assured a fair trial.
Finance Minister Nirmala Sitharaman will present the Union Budget on Tuesday as the Monsoon Session of Parliament gets underway next week with the united opposition set to corner the National Democratic Alliance government on issues ranging from the NEET paper leak case and railway safety.
Banks will not lend below the minimum or base interest rate from Thursday as directed by RBI, but may continue to give cheaper credit to some preferred clients as per their discretion under existing agreements.
The candidate will be expected to have at least two to three years of remaining service.
It will be a public sector bank and Rs 1,000 crore has been allocated to it.
'As we navigate uncertain waters, a conservative approach to largecap investing could provide a strategic advantage.'
The use of RBI capital to strengthen public sector banks will have many positive implications for the economy -- and a few manageable downsides, points out R Jagannathan.
The finance ministry has asked public sector banks to monitor cases where insolvency proceedings could be initiated against individuals who are guarantors of corporate debtors that have defaulted on loans.
The government on Tuesday gave greater autonomy to state-run banks, allowing them make domestic and overseas acquisitions without its approval.
Besides being reasonably valued, the Indian Bank IPO has many triggers.
Canara Bank, India's second largest public sector bank, is all set for an aggressive play in the venture capital business.
More people are now comfortable using their debit cards.
The government is finalising appointment of at least nine public sector bank chiefs and a dozen executive directors who would replace them or fill existing vacancies.
In the Budget 2011-12, the government had announced a gross borrowing of Rs 4.17 lakh crore (Rs 4.17 trillion) from the market, lower than Rs 4.47 lakh crore (Rs 4.47 trillion) during last fiscal.
Many bankers say the move will have a serious impact on the chain of command of nationalised banks and that it would only enable the government to dish out favours to a few of their own men.
Private sector lenders have been communicating to their customers about their strong capital positions but it has not put depositors at ease.
The Indian banking system's latest record on wilful defaulters shows Rs 62,970 crore, or around 10 per cent increase, in the additional amount outstanding since the pandemic began. The total outstanding amount increased to Rs 6.85 trillion in June from Rs 6.22 trillion in December 2019, shows a Business Standard analysis of numbers from the TransUnion CIBIL database. India recorded its first case of Covid-19 in January 2020.The amount outstanding to wilful defaulters had touched a post-pandemic peak of Rs.7.6 trillion in December 2020 (or Rs 1.4 trillion more than pre-pandemic levels).
The finance ministry has proposed to remove from the guidelines a clause on the lateral movement of small and mid-sized banks' heads to large banks.
Chidambaram also asks these not to rush for bulk deposits to bloat balance sheets.
In December last year, the finance ministry had asked five state-run banks -- Punjab National Bank, Canara Bank, Union Bank of India, Bank of Baroda and Bank of India -- to explore merger opportunities in the banking industry.
Employees of four bank unions participating in strike are from All India Bank Employees Association, Bank Employees Federation of India, All India Bank Officers' Association and National Union of Bank Employees.
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After scrapping the selection of six UPA-appointed bank chiefs, the government has now decided to make significant changes to the selection process.
Says licensing of new banks should be a continuous process instead of the current stop-go system
RBI feels that oil firms seeking a single quote for their dollar requirement, instead of present practice of floating enquiring with several pubilc and private sector banks, would help check volatility and arrest the free-fall of the rupee.
And will sell its 50 per cent stake to State Bank of India in Russia as part of rationalisation of overseas branch network.
