RBI imposed Rs 1.72 crore Penalty on PSU Bank

 


The Reserve Bank of India (RBI) has fined the State Bank of India (SBI) Rs.1.72 crore (Rs.1,72,80,000) on April 29, 2025. The fine was for not following certain rules related to:

Giving loans and advances

  • Protecting customers from unauthorized electronic transactions
  • Proper procedures for opening current accounts

This penalty was imposed under RBI’s powers as per the Banking Regulation Act, 1949. RBI had carried out an inspection of SBI based on its financial position as of March 31, 2023. During this review, RBI found that SBI had not followed some of its rules. A notice was sent to SBI asking why it should not be penalized.

After reviewing SBI’s written and verbal responses, RBI decided that the following issues were valid:

  1. SBI gave a bridge loan to an organization based on money it expected to receive from the government (as subsidies or reimbursements).
  2. SBI delayed refunds for customers affected by unauthorized online transactions. In some cases, it did not credit accounts within 10 working days or compensate customers within 90 days.
  3. SBI opened or kept some current accounts in ways that did not follow the RBI’s rules.

RBI clarified that this action is about breaking regulatory rules. It does not mean the bank’s deals with customers are invalid. Also, this penalty does not stop RBI from taking other actions against the bank in the future.

What is a Bridge Loan?

bridge loan is a short-term loan used to “bridge the gap” between two financial events—typically between the need for immediate funds and the arrival of expected funds. A bridge loan helps someone get quick money now while waiting for larger funds to come in later. Example: A company is expecting a Rs.5 crore subsidy from the government, but needs Rs.1 crore now to keep operations going. It can take a bridge loan from a bank, and repay it once the subsidy arrives.

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PSU Bank Operating Profit, Net Profit & PLI for Q4FY25

 

                               

Public sector banks' cumulative profit rose to a record level of Rs 1.78 lakh crore in the fiscal year ended March 2025, registering a growth of 26 per cent over the previous year.


All 12 public sector banks had earned a total profit of Rs 1.41 lakh crore in FY24.

The year-on-year increase in profit in absolute terms rose by about Rs 37,100 crore in FY25.


Out of the total profit of Rs 1,78,364 crore earned during the FY25, market leader State Bank of India (SBI) alone contributed over 40 per cent of the total earnings, as per the published numbers on stock exchanges.

Bank

Operating Profit (In Crore)

Net Profit (In Crore)

PLI(In days)

Bank of Baroda (BOB)           

8132

5048

 -

Bank of India(BOI)                  

4884

2626

15

Bank of Maharashtra(BOM)    

2520

1493

 

Canara Bank                      

8284

5004

 

Central Bank of India         

2003

1034

 

Indian Bank                        

5024

2961

 

Indian Overseas Bank(IOB)

2618

1051

 

Punjab & Sind Bank            

816

312

 

Punjab National Bank(PNB)   

6775

4567

14

State Bank of India(SBI)         

70901

18643

 

UCO Bank

1698

652

 

Union Bank of India            

7700

4984

 




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Indian Overseas Bank(IOB) Local Bank Officer (LBO) Recruitment 2025 Notification Released, Apply Online


Indian Overseas Bank (IOB)
has issued the official notification for the recruitment of Local Bank Officer (LBO) posts. The IOB LBO Recruitment 2025 notification was released on 9 May 2025, and the online application process will be open from 12 May 2025 to 31 May 2025. A total of 400 vacancies are available under this recruitment drive.

Indian Overseas Bank LBO Recruitment 2025 Overview

OrganizationIndian Overseas Bank (IOB)
Post NameLocal Bank Officer (LBO)
Total Vacancies400
Application ModeOnline
Job LocationAll India
Official Websitewww.iob.in

Indian Overseas Bank LBO Recruitment 2025 Important Dates

  • Notification Date : 09 May 2025
  • Apply Online Start Date : 12 May 2025
  • Last Date to Apply : 31 May 2025
  • Pay Exam Fee Last Date : 31 May 2025
  • Exam Date : To be released

Indian Overseas Bank LBO Recruitment 2025 Application Fee

  • Gen/OBC/EWS : Rs 850/-
  • SC/ST/Other : Rs 175/-
  • Mode of Payment : Online

Indian Overseas Bank LBO Recruitment 2025 Age Limit

  • Minimum Age : 20 Years
  • Maximum Age : 30 Years
  • Age Limit as on : 01/05/2025
  • The age relaxation will be given as per the rules.


Indian Overseas Bank LBO Recruitment 2025 Selection Process

The Indian Overseas Bank LBO Recruitment 2025 selection process includes the following stages:

  • Written Exam
  • Local Language Test
  • Interview Test
  • Medical Examination

Indian Overseas Bank LBO Recruitment 2025 Exam Pattern

  • Negative Marking : 1/4th
Post NameQualification
Local Bank Officer (LBO)Graduation + Knowledge of Local Language
SubjectQuestionMarksTime
Reasoning & Computer306060 minutes
General/ Economy/ Banking Awareness404030 minutes
Data Analysis and Interpretation306060 minutes
English 404030 minutes
Total 140200 3 Hours

Indian Overseas Bank LBO Recruitment 2025 Notification PDF & Apply Online Form Link

Notification PDF


Apply Online (From 12.5.2025)

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Axis Bank Manager Arrested in Bank of India(BoI) Loan Takeover Case for Rs 2.20 Crore Fraud


Rahul Patel, the branch manager of Axis Bank's Vesu branch, has been charged with fraud by the Athwalines police for allegedly defrauding Bank of India of Rs 2.20 crore by failing to turn over mortgage paperwork during a loan transfer. 


Police say the branch manager of Bank of India's Ghoddod Road branch made the allegation. The issue concerns Siddhi Dasani, who owned Shri Anand Impex in Kadodara and had a Rs 2.20 crore cash credit account with Axis Bank. 


Siddhi approached the Chauta Pul branch of Bank of India to assume the current loan because of the exorbitant interest rates.


A portion of the Rs 7.45 crore fresh loan that the Bank of India approved once all formalities were finished was used to pay off the outstanding balances at Axis Bank.  

Rahul Patel allegedly neglected to shut the previous loan account and provide Bank of India with the original mortgage property paperwork, which are necessary for these loan takeovers, even after receiving the money.


Unexpectedly, Siddhi and her husband, Uttam Dasani, allegedly took money out of the Axis Bank account even after the settlement was reached and then stopped making payments to the Bank of India.  The Axis Bank manager's inaction contributed to this chain of events, which caused Bank of India to suffer a financial loss and call the police.


For willful misconduct and fraud, authorities have filed a First Information Report (FIR) against Rahul Patel. They claim that Patel purposefully concealed important documents, allowing the Dasanis to abuse the system.

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Due to an emergency, the government of Rajasthan requests that the RBI open all banks in border areas on holidays

 




The Rajasthani government has requested that all banks operating in seven important districts close to the international border stay open on public holidays this week due to an emergency situation. The goal of the directive is to guarantee that residents of these delicate locations will always have access to banking services. 


The Additional Chief Secretary of the Finance Department, Akhil Arora, wrote to the Reserve Bank of India (RBI) requesting that, despite the fact that May 10 and May 11, 2025, are public holidays, all bank branches in Jaisalmer, Barmer, Bikaner, Shri Ganganagar, Phalodi, Hanumangarh, and Jodhpur continue to operate.


The decision was made due to an “emergent situation” at the International Border of India, which requires constant access to essential banking services, especially in border districts. These services include transactions, withdrawals, fund transfers, and access to financial aid or emergency funds.


The letter emphasizes that it is important for banks to function normally during these days so that people living in these regions do not face inconvenience. This is especially important for those dependent on regular banking services for their daily needs and for any emergency-related financial transactions.

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Bank of India(BoI) Q4 Net profit jumps 82% YoY

 


Bank of India(BoI) on Friday, May 9, reported its March quarter earnings, in which net profit rose 82.5% year-on-year to ₹2,626 crore, compared to ₹1,439 crore in the same quarter a year ago.


The bank's Net Interest Income (NII) or core income rose 2.1% to ₹6,063 crore as against ₹5,936 crore in the year-ago quarter.


The company's asset quality also improved, with Gross Non-Performing Assets (NPA) declining to 3.27% from 3.69%, and Net NPA reducing to 0.82% from 0.85% last year.


Bank of India recommended a dividend of ₹4.05 (40.50%) per equity share of ₹10 face value for the financial year 2024-25, subject to approval of shareholders at the ensuing Annual General Meeting of the Bank.


Record date for the said dividend has been fixed as June 20, 2025. Hence, shareholders having shares as on the cut-off date i.e. June 20 will be eligible for the dividend payment.

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IDBI Bank Recruitment 2025 : Jobs for 676 Junior Assistant Manager Posts


IDBI Bank Limited has officially released a recruitment notification for
 676 Junior Assistant Manager (JAM) Grade ‘O’ posts across its branches in India. Interested and eligible candidates can apply online from May 8, 2025. The recruitment drive offers a great opportunity for young graduates seeking a career in the banking sector.


Eligibility Criteria for IDBI JAM Recruitment 2025

Educational Qualification

Candidates must have completed a graduate degree with at least 60% marks from a recognized university. For candidates belonging to SC, ST, and PwBD categories, a minimum of 55% marks is acceptable. Additionally, basic computer knowledge is required for all applicants.

Age Limit

Applicants must be between 20 and 25 years as of May 1, 2025. Candidates should be born between May 2, 2000, and May 1, 2005 (both dates inclusive). Age relaxation is applicable for reserved categories as per government norms.

Application Process and Fee Details

Eligible candidates can submit their applications online through the official IDBI Bank website until May 20, 2025. The application fee is as follows:

  • General/OBC/EWS: Rs.1050
  • SC/ST/PwBD: Rs.250

Selection Process for Junior Assistant Manager Posts

The selection process includes the following stages:

  • Online Written Examination
  • Interview
  • Medical Test

Final selection will be based on performance in the above stages.

IDBI JAM 2025 Exam Pattern

The online written exam will consist of 200 multiple-choice questions carrying a total of 200 marks and will be conducted for a duration of 120 minutes. The exam pattern is as follows:

Note: There will be a negative marking of 0.25 marks for every incorrect answer.

SectionNo. of QuestionsMarks
Reasoning6060
English Language4040
Quantitative Aptitude4040
General Awareness6060
Total200200


Download PDF of Notification

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