Government plans to disinvestment stake in 5 PSBs


 According to a report, the government is planning to accelerate the process of selling its ownership in public sector banks (PSBs) as part of a significant push towards disinvestment and reforms in the banking industry. 


 Additionally, it insisted that the hiring of merchant bankers to supervise the transactions is nearing completion, suggesting that the process is accelerating. 


 The sources that for the next six months, the government intends to sell up to 20% of its shares in five public sector banks (PSBs): Indian Overseas Bank (IOB), Punjab & Sind Bank, Central Bank of India, Bank of Maharashtra, and UCO Bank. The Offer for Sale and Qualified Institutional Placement (QIP) routes will be used to carry out the share sales.


In the case of UCO Bank, for example, the Center hopes to raise Rs 2,500 crore by selling up to 10% of the company. To meet the capital and operating needs of the individual banks, the money earned from the sale of PSB stakes will be utilized. 


 This action is a component of the government's plan to decrease direct ownership in state-owned banks while simultaneously strengthening their balance sheets. In her 2021–22 Budget speech, Finance Minister Nirmala Sitharaman had previously declared that the government would pursue the privatization of two PSBs in addition to IDBI Bank.


According to information on the BSE website, as of the end of September, the Indian government owned over 93% of Central Bank of India, 96.4% of Indian Overseas Bank, 95.4% of UCO Bank, and 98.3% of Punjab and Sind Bank. Listed corporations must maintain a 25 percent public shareholding, according to the Securities and Exchange Board of India (SEBI); however, government-owned businesses are exempt from these requirements until August 2026.

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Bank Unions and Management Held a Conciliation Meeting Today; Talks about PLI and 5 Days Banking

 


With reference to the information in the conciliation minutes dated April 29, 2025, the parties' discussions have begun today. As stated in the final paragraph of the conciliation proceedings on April 29, 2025, it is noted at the outset that the representatives from the Bank of Maharashtra, State Bank of India (later one representative joined, but not at the proper level), Central Bank of India, UCO Bank, and IOB (later one representative joined, but not at the proper level) were once more absent. In order to ensure that their representatives of the proper level are always sent, it was agreed to write a letter to the top management of each bank.


All other issues contained in the conciliation proceedings dated 29.04.2025 were also reviewed with following outcomes:


All other issues contained in the conciliation proceedings dated 29.04.2025 were also reviewed with following outcomes:

What Bank Unions Said? What happened in Meeting

(i) There was an improvement in the matter of PLI as intimated by the Ld. Representative of DFS that it is proposed to give flexibility to the banks’ board for identification of officers in different brackets in each scale, within the ambit of the PLI scheme. However, the Ld. Representatives of unions were not agreed. Accordingly, after marathon discussion it is agreed that representatives of union and the IBA to discuss the issue threadbare at bipartite level and come up with certain proposal within the ambit of the scheme. 


Such proposal shall be submitted to the DFS for review of the present scheme in the light of the proposal so that a consensus may be arrived at in order to maintain smooth and cordial relation in the industry. At this juncture, it is expected that all the banks shall cooperate by not implementing the PLI scheme for any scale till the outcome of the discussions.


The committee/the group so created for discussion on the issue of the PLI is also mandated to discuss the issue of outsourcing / recruitment of sub-staff and submit a report.


(ii) So far recruitment and the data in this regard is concerned, some of the banks have submitted but lack of consistency and uniformity is observed. Accordingly, the committee/group so created for discussion on PLI is also advised to collect the data on recruitment in an appropriate format so that consistency and uniformity is maintained and submit the same on the next date of hearing.


(iii) Despite issue of a letter by DFS to all the Chief Secretaries of the States to look into the security issue of banks against attack on bank staffs, one fresh instance of attack at Dhule in State Bank of India has been reported which is not only unwarranted rather painful and unbearable. In view of this fact, IBA is requested to advise all the Banks to take immediate steps to avoid any such occurrences in future.


(iv) The issues related to 5 days banking, the matter discussed in length, a D.O. letter bearing No. 21(17)/2025-IR dated 16.06.2025 has already been sent to the Secretary, DFS. The representative of DFS informed that the issue is under consideration of the Government.

The next date of conciliation proceedings is fixed on 11.08.2025 at 11.30 AM.




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The number of employees at PSU banks is steadily declining: Report


According to a data compiled by the daily, PSBs including Bank of India, Canara Bank,Bank of Baroda and Uco Bank witnessed a drop in its employee size, whereas the State Bank of India and Punjab National Bank saw a slight increase in the headcount.


According to the research, Bank of India's workforce decreased from 52,374 in the fiscal year (FY) 2023 to 50,944 in 2024 and then to 50,564 in 2025. The number of employees at Canara Bank similarly declined, going from 84,978 in FY23 to 82,638 in FY24 and 81,260 in FY25. Bank of Baroda also continued to reduce, going from 76,513 in FY23 to 74,227 in FY24 and then even lower to 73,742 in FY25. From 21,698 in FY23 to 21,456 in FY24 and then to 21,049 in FY25, Uco Bank's workforce shrank.


On the other hand, for SBI, which is the largest PSB in India, there was a slight recovery after falling from 235,858 in FY23 to 232,596 in FY24. In FY25, the headcount increased to 236,226, the report stated. Meanwhile, PNB also saw its employee count increase slightly from 102,319 in FY23 to 102,349 in FY24 before slightly falling to 102,316 in FY25.


Concerns have been expressed by a number of bank unions regarding the recent decrease in employee numbers. Bank workers also protested earlier this year in a few towns. They have claimed that having too few employees is affecting both customer service and employee wellbeing. The chief secretaries of states and union territories have allegedly been urged by the finance ministry to raise awareness among bank workers and ensure that the public gets uninterrupted service. This follows social media posts and news stories detailing instances of physical assault, verbal abuse, and threats of violence against bank employees on the property.

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Supreme Court opens FIR Against Bank of India(BOI) in Gold Loan Case


A businessman obtained a loan from the Bank of India's Motijhil Branch in order to obtain the money he needed. On July 22, 2020, he was granted a loan of ₹7,70,000 after pledging 254 grams of 22 carat gold pieces as security. The payback of this loan is the point of contention. 


The appellant claims that after receiving a notification from the bank on October 7, 2022, requesting payment of ₹8,01,383.59, including interest, he paid the amount on March 31, 2023. He was unaware that the bank had revalued the gold he had pledged and had taken ₹1500 out of it for expenses.


His requests to return the gold that had been committed were denied for years. However, the bank claims that he failed to repay the loan, which is why the gold became a bank asset. 


 When it was purportedly reported by a valuer other than the one who had initially assessed the appellant's gold at the time of the loan that the material pledged was not gold in reality but rather gold plated on top of other metals, the aforementioned gold was revalued in order to recover the money involved in the transaction and was discovered to be counterfeit.


Additionally, the appellant filed a formal complaint against the bank's branch and credit manager for violations of Sections 420, 406, and 34 of the Indian Penal Code. 


The Patna High Court granted the respondent's (bank manager's) request to have the FIR quashed. A Special Leave Petition (SLP) has been submitted in response to this. The FIR against the bank has now been reopened by the Supreme Court.


Court Order

A bench of Justice Sanjay Karol and Justice Manoj Misra said that the High Court had looked at the bank’s policy to prevent and detect fraud and also considered the removal of the first valuer. 


Based on this, the High Court concluded that the bank had no bad intentions. It also said that the person who filed the case (the appellant) had tried to get a loan from the bank with bad intentions.

However, the judges of the Supreme Court stated that they were unable to comprehend how the High Court arrived at this result because genuine evidence is necessary to determine someone's purpose. They further questioned how, in the absence of evidence, the High Court determined that the applicant had a hidden motivation. 


 The Court added that there's still a chance the bank misappropriated money. When the High Court dismissed the FIR (police report), it failed to adequately take this into account. Furthermore, the bank failed to have a third party confirm the second valuer's findings. 


 Therefore, it is impossible to say with certainty that nobody from the bank or the valuers did anything improper with the gold that the appellant pledged without considering all of the available evidence.

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PSU Bank clerk mysteriously dies after collapsing outside the Chitrakoot branch

 


A Bank of Baroda employee tragically passed away in Chitrakoot under dubious circumstances. The deceased, Sandeep Mishra, was a native of Lucknow and was 35 years old. He was employed at the bank as a clerk.


Sandeep Mishra reportedly showed up for job at the bank branch on Saturday morning. Nevertheless, Ayub Basu, the branch manager, saw that Sandeep seemed inebriated. The management suggested that he return home and recover.


Sandeep abruptly passed out next to the door as soon as he left the bank's grounds. When things became serious, an ambulance was dispatched right away.


Sadly, when Sandeep arrived at the district hospital after being taken there, the physicians pronounced him dead. The cause of death has not yet been determined.


The body was taken into custody by the Kotwali police and transferred to a mortuary for a post-mortem examination in order to ascertain the cause of death. Sandeep Mishra's family has been notified, and an inquiry is being conducted.

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Case Filed Against 5 Bank Officers in Agra, Chief Manager Suspended


In a serious development, the Jagdishpura police station in Agra has registered a case against five Indian Bank officers after an investigation based on a complaint filed by a woman. The case includes charges of fraud, defamation, and violation of the Information Technology (IT) Act, along with provisions under the SC/ST Act.

What Is the Case About?

According to ACP Loha Mandi, Mayank Tiwari, the case was registered after instructions from the SC-ST Commission. The complaint was filed by Preeti Singh, a resident of Nilgiri Enclave, Albatia Road, Agra.

Preeti Singh’s husband, Vikrant Singh, previously served as the Chief Manager at Indian Bank’s Noida branch. He was suspended by the bank in connection with a corruption case. Following his suspension, Preeti Singh filed a complaint alleging that bank officials acted illegally to falsely strengthen the case against her husband.

Who Are the Accused?

The FIR names five Indian Bank officers who are posted in different locations:

  • Vikay Arya
  • Deshbandhu Gupta
  • Archit Gupta
  • Harsha Sahu
  • Vishesh Kumar Srivastava

These officers are posted in Noida, Lucknow, and Chandigarh, as per the FIR.

What Are the Allegations?

Preeti Singh alleged that the bank officers illegally accessed private bank account information belonging to her and her minor daughters, without any official permission. She claims that these details were taken without proper communication or authorization from the banks where these accounts were held, including Canara Bank and the State Bank of India (SBI).

She also said that forged documents were prepared to make false claims, and that every effort was made to damage her social reputation. The accused bank officials allegedly attempted to show that her husband’s corruption charges were valid by misusing their power and accessing private information.

Police Action and Legal Process

ACP Mayank Tiwari confirmed that serious allegations were made against the Indian Bank officials. He stated that the woman had been filing repeated complaints, which eventually reached the SC-ST Commission. After a legal review, police registered the case under relevant sections of the SC/ST Act, fraud, defamation, and the Information Technology Act.

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RBI approves amalgamation of two Gujarat based Co-Operative Banks


The Scheme of Amalgamation of The Dhinoj Nagrik Sahakari Bank Ltd., Dhinoj, Gujarat, with Akhand Anand Co-operative Bank Ltd., Surat, Gujarat, has been approved by the Reserve Bank of India in the exercise of the authority granted by sub-section (4) of Section 44A read with Section 56 of the Banking Regulation Act, 1949.


The plan is scheduled to go into effect on Monday, June 16, 2025. Effective June 16, 2025, all Dhinoj Nagrik Sahakari Bank Ltd. branches in Dhinoj, Gujarat, will operate as branches of Akhand Anand Co-operative Bank Ltd. in Surat, Gujarat.


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Gross NPA of Banks may Increase this Year: Care Edge Ratings

 


Indian banks' asset quality has greatly improved in recent years.  This indicates a decrease in the quantity of loans that are not being repaid, also referred to as non-performing assets, or NPAs.  Higher bank write-offs, improved recoveries, and fewer new bad loans were the primary drivers of this improvement in the banking industry.


 However, experts predict that things could get a little worse as we enter the fiscal year 2025–2026 (FY26).  This is due to the fact that some loan kinds, particularly microfinance and unsecured personal loans, are growing riskier.  These are unsecured loans, and the bank will have a difficult time getting the money back if the borrower defaults.


In the past, banks had to cope with a large number of bad loans as a result of large corporate loans going bad, particularly between 2014 and 2018. The Gross Non-Performing Asset (GNPA) ratio increased from 3.8% in 2014 to 11.2% in 2018 as a result of these loans.


This compelled banks to write down several loans and make huge provisions—money set up to cover losses. Banks began making more retail loans to individuals rather than big businesses in order to prevent such circumstances in the future. Retail loans' percentage rose from 19% in 2015 to 34% in 2025 as a result of this change.


The entire GNPA ratio decreased to 2.3% by the end of FY25, which is encouraging.  However, there is still worry, particularly in banks in the private sector.  These banks are increasingly exhibiting indications of stress as they offer more credit card loans, personal loans, and other unsecured loans.


 As a result, private banks have had more slippages (new non-performing assets) than public sector banks.  It is anticipated that the amount of money recovered from previous bad loans will decline and the number of new bad loans will rise marginally in FY26.  As a result, the GNPA ratio may marginally increase to between 2.3% and 2.4%.


The agriculture industry has performed better when compared to other sectors.  In March 2020, its GNPA ratio was 10.1%; by December 2024, it had dropped to 6.2%.  A significant improvement has also been observed in the industrial sector, which fell from 14.1% in March 2020 to just 2.7% in December 2024.


 Despite having a low GNPA of 1.2%, retail loans—including credit card bills, student loans, and personal loans—are predicted to experience increased stress in FY26 as a result of an increase in unsecured loan delinquencies.  In December 2024, the GNPA ratio for loans to the services sector was 2.3%.


The growing amount of household debt in India, which was 42.1% of GDP as of December 2024, is one major worry. This has been rising gradually, but it is still less than other emerging markets. A large number of low-income or sub-prime borrowers have taken out loans primarily for consumption, such purchasing electronics or handling daily bills.


The likelihood of these debtors defaulting is higher. Conversely, wealthy borrowers have utilized loans to build assets such as homes. Banks may expect an increase in non-performing assets (NPAs) from unsecured loans as stress on these loans rises, particularly in the first half of FY26.

Banks temporarily altered the terms of a large number of loans during the COVID-19 pandemic.  The term "restructured standard assets" was used to describe these.  These loans are becoming less common since they are either repaid or become non-performing assets.


 In general, there are fewer stressed loans overall (bad loans including restructured loans).  With ratios ranging from 75% to 80%, public sector banks have taken the initiative to create robust financial cushions, often known as provision coverage.  At roughly 74%, private sector banks likewise have respectable provision coverage.

Source - hellobanker.in

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The biggest PSU bank in India, with a large net profit facing peons shortage in its branches

 


Peons have a crucial role in every government agency.  They are responsible for much more than just carrying files, unlike what many people believe.  Peons assist in managing daily paperwork, sending out letters and documents, and maintaining the department's efficiency.  Even minor administrative duties may be postponed in their absence.


 Let's now discuss banks, with a focus on public sector banks.  Peons are an essential component of branch operations here as well.  The fact that peons in banks manage crucial responsibilities pertaining to financial records may surprise you.  According to Reserve Bank of India (RBI) regulations, each financial transaction in a bank creates a voucher or document that must be kept up to date and preserved for a minimum of ten years.


These coupons are quite significant.  The bank is required to disclose the relevant papers in the event that a customer files a complaint or a case is taken to court.  These files are managed by the peons, who also make sure they are well-organized and secure.  How will these crucial documents be handled, then, if peons are not available?


 Remarkably, nobody is discussing the lack of peons, despite the fact that the lack of bank officials and clerks is a hot topic.  A shortage of peons is causing problems for numerous bank offices throughout the nation.  Basic tasks like moving internal documents, cleaning, and handling physical vouchers suffer greatly in their absence.


One of India’s largest public sector banks, Punjab National Bank (PNB), is currently facing a serious staff shortage. The issue is not just about officers and clerks—even peon posts are vacant. Despite the growing workload and the importance of maintaining records, banks are not recruiting peons.


In the quarter that ended in March 2025, Punjab National Bank's net profit climbed 49.28% to Rs 4989.29 crore.  PNB declared a net profit of Rs 18480.29 crore for the entire year.  This is a substantial profit, and the bank can simply expand its workforce to enhance customer service.

  • Will it be the branch manager or officer, who already has multiple responsibilities?
  • Or should the senior management be held accountable for not hiring enough support staff?

 Numerous public sector bank branches, including PNB, are reportedly operating without Peons.  Branches have employed private contractors to perform Peon's duties on a daily or monthly basis.  The key query, though, is whether financial work can be trusted to a private individual.  Why don't banks hire Peons?


Bank employees’ unions should raise their voice and demand immediate recruitment of peons. Ignoring the shortage now may lead to bigger problems in the future, especially when legal or regulatory bodies ask for documents that the banks fail to produce.

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Despite branch expansion, PSBs like BOI,BOB and Canara Bank are reporting a decline in staff



The number of staff at various Public Sector Banks (PSBs) in India has been steadily declining over the past three years, despite an increase of bank branches. 


According to the report's comprehensive data, over the past three fiscal years, the number of employees at numerous significant public sector banks, including Bank of India, Canara Bank, Bank of Baroda, and UCO Bank, has decreased. 


 Meanwhile, the number of employees at banks like Punjab National Bank (PNB) and State Bank of India (SBI) has either remained the same or marginally grown.


  • Bank of India:
    • FY23: 52,374 employees
    • FY24: 50,944
    • FY25: 50,564
  • Canara Bank:
    • FY23: 84,978
    • FY24: 82,638
    • FY25: 81,260
  • Bank of Baroda:
    • FY23: 76,513
    • FY24: 74,227
    • FY25: 73,742
  • UCO Bank:
    • FY23: 21,698
    • FY24: 21,456
    • FY25: 21,049
  • SBI (India’s largest public sector bank):
    • FY23: 235,858
    • FY24: 232,596
    • FY25: 236,226
  • PNB:
    • FY23: 102,319
    • FY24: 102,349
    • FY25: 102,316
Even though employee numbers have dropped or remained flat, the number of bank branches has continued to rise, especially in FY25.


Bank Unions Raise Concerns Over Staff Shortage

The declining number of employees in PSBs has prompted concerns from a number of bank employee unions. They have noted that in many branches, only two or three workers handle all of the work, which has an impact on customer service and puts additional strain on current employees. Bank workers protested for improved working conditions and staffing earlier this year in a number of towns. 


 Business Standard was informed by a top bank executive that "there are branches where only two people are working." In such severe situations, we discovered that only three workers were in charge of one or two branches. Urgent action is required in this case.


Government intervenes in response to growing risks to bank employees

According to reports, the Finance Ministry has also urged state and union territory officials to guarantee the safety of bank workers and the seamless operation of banking services. This action was taken in response to many reports of threats, physical attacks, and verbal abuse directed at bank employees at various locations. These reports were extensively disseminated on social media and news outlets.
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