State-run banks News

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On December 20, the government had sought lawmakers' approval for infusion of an additional Rs 41,000 crore, taking the total fund infusion to Rs 1.06 trillion in FY19.

Last fiscal, the RBI had transfered Rs 65,876 crore surplus as dividend to the government.

A resolution of Indian banks` bad loans is the "first and primary focus" of the government, a senior finance ministry official said on Wednesday.

This fiscal, the government has budgeted Rs 10,000 crore of capital infusion in public sector banks.

Domestic rating agency Indian Ratings and Research on Wednesday released a report on health of large public sector banks and private banks.

Finance Minister Arun Jaitley is undertaking a quarterly performance review of state-run banks here on Friday not just to see the progress of various financial inclusion schemes, but also look at the overall health of the banking system, officials said.

India will inject 229.15 billion rupees ($3.41 billion) in 13 state-run banks to help shore up the cash-strapped lenders and revive loan growth that has hit a two-decade low.

IMF's financial counselor Jose Vinals singled out the country as being the best placed among emerging markets, but underlined that it has problems of its own which need to be dealt with.

Indian liquor baron Vijay Mallya said he has been in talks to enter into a one-time settlement with state-run banks, to which his now-defunct carrier Kingfisher Airlines owes more than USD 1 billion.  

Reserve Bank of India Governor Raghuram Rajan said on Thursday the government would soon appoint heads of state-run banks given the importance of acting quickly.

The government on Wednesday said it's currently examining the funds requirement of public sector banks over the next 3 years and promised required capital support as part of a comprehensive package to strengthen them.

Bank unions will be formally signing the new wage revision agreement with the industry body Indian Banks Association (IBA) on Monday, one of the heads of the unions said today.

Jaitley proposed to set up an autonomous Banks Board Bureau to help lenders raise capital for expansion needs.

Reserve Bank Governor Raghuram Rajan on Friday hailed the government direction to state-run banks to act without fear or favour and ignore extraneous considerations in their commercial operations.

State-owned banks are likely to continue to raise funds through additional Tier-I capital to meet the Basel III norms even as the government plans to pare its holdings in such financial institutions, says a report.

The move comes months after an investigation began into whether the head of state-controlled Syndicate Bank took bribes to roll over a loan to family-controlled Bhushan Steel .

Banks have opened a whopping 5.29 crore new accounts so far under the flagship Jan Dhan programme.

The Reserve Bank of India (RBI) was seen buying dollars via state-run banks to prevent further appreciation in the rupee, four traders said on Monday.

The rupee ended at 60.55/56 per dollar, down about 0.83 percent for the day, its biggest single-day fall since June 13.