Public sector banks News

The State Bank of India (SBI) was the main driver of the impressive performance, accounting for nearly 43 per cent of the total earnings.

MTNL, the loss-making public sector telecom firm has reported a total debt burden of Rs 34,484 crore as of June 30, 2025.

FM Nirmala Sitharaman added that while some refinements are needed, the Council is very close to finalising key changes such as rate reductions, rationalisation, and slab adjustments. 

In addition to their stellar performance, PSBs have contributed significantly to shareholder returns, paying a total dividend of Rs 61,964 crore over the past three years.  

The central bank has proposed that the new guidelines should come into effect from FY25 onwards. 

Indian Banks Association and bank unions sign the 9th joint note on Friday. They signed a pact to increase wages by 17% annually. Up to 8 lakh bank employees are expected to gain from the pay increase.

During the two hours meeting with MDs and CEOs of PSBs, an open discussion was held on the global scenario amid the failure of the SVB and Signature Bank.

Press Information Bureau called those media reports fake that claimed NITI Aayog released the list of public banks going to privatisation. PIB in its press release on Friday said that no such list as mentioned in the media reports has been shared by NITI Aayog in any form. Some media reports were circulating in the past claiming that NITI Aayog had released the list of public banks that are going to become private.

FM directs banks to enhance coverage of SCs in all schemes. FM advised looking into their needs for capacity building. The community constitute about 18 per cent of the total workforce.

PNB reported the highest amount of frauds at Rs 9,528.95 crore. SBI reported frauds worth Rs 6,932.37 crore.

The minister asked lenders to support sectors that face interruption due to COVID. She also reviewed various steps taken by PSBs in implementing pandemic-related measures.

The United Forum of Bank Unions (UFBU) has declared a strike in protest of the government's decision to privatise public banks. Public sector banks hold 70% of the country's total deposits, and handing them over to private capital will jeopardise the ordinary man's money deposited with these banks,

Banks reportedly would be encouraged to raise funds from the market and also by selling their non-core assets. The government has earmarked Rs 20,000 crore for the recapitalisation of PSBs in FY22. Finance Minister is expected to present the fourth budget of the Modi 2.0 government on February 1.

The Indian Banks’ Association (IBA) had urged the government to increase the family pension of deceased employees. The Central government has also increased the contribution limit for PSB employees under the National Pension Scheme (NPS). Employees of the public sector banks can now invest up to 14% of their salary, up from the previous limit of 10%.

2,118 branches of 10 PSU banks. 1,283 branches of Bank of Baroda were either closed or merged. No branch of Bank of India and UCO bank was closed in the last fiscal.

The Budget allocated Rs 20,000 crore towards recapitalisation of PSBs to help them consolidate their financial capacity. Moreover, PSBs have proactively built buffers during the financial year 2020-21 (FY21) to improve their resilience in the face of the shock from the pandemic. The problem has been accentuated with the Reserve Bank of India now writing to the bank to meet their obligation towards interest on interest for all borrowers where exposure is over Rs 2 crore as well.

Services such as deposits and withdrawal at branches, cheque clearance and loan approvals would be affected due to the strike. UFBU, an umbrella body of nine unions, in a statement claimed that about 10 lakh bank employees and officers of the banks will participate in the strike. Banks have also informed that they are taking necessary steps for the smooth functioning of bank branches and offices.

10 lakh bank employees have been protesting in the country for the last one month United-Forum made every effort before the Additional Chief Labour Commissioner to prevent the strike Banks will remain closed for four days from Saturday

As per RBI guidelines, all banks are permitted to levy service charges. RBI allows this in a fair, transparent, non-discriminatory manner. Number of free cash deposits and withdrawals reduced.

According to Moody's, Indian economy will contract sharply in fiscal year ending March 2021. It will return to growth, though modestly, in fiscal 2021. Moody's said to maintain financial stability, government will continue to provide capital support for PSBs.