Government announced New Transfer Policy for PSU Bank Employees







The Government has introduced a New Transfer Policy for Public Sector Bank Employees in India. 


 The banks’ ‘Transfer Policy’ has been assessed to enhance transparency and establish a consistent, non-discretionary framework. 

Public Sector Banks (PSBs) are advised to incorporate these recommendations into their own ‘Transfer Policy’ with the approval of their Boards. Immediate action is required for implementation and compliance starting from FY 2025-26.


New Transfer Policy for PSU Bank Employees (Government Bank Women Staff)Administrative Layers: 


Clearly define various administrative layers (Region, Zone, Circle, FGMO) and establish minimum and maximum tenures at each layer.


Transfer Timelines: Define and adhere to strict transfer timelines, completing transfer exercises before June each year, with mid-year transfers minimized except for promotions or administrative needs.


Transparency in Transfers: Ensure transparency by annually publishing seniority lists and existing/expected vacancies. Rotational transfers should be based on seniority, with exceptions documented.


Automation of Transfer Process: Develop an online platform for the transfer process, allowing employees to express location preferences. The portal should include transfer policies, guidelines, seniority lists, and vacancy details.


Regional Accommodation: Accommodate officers up to Scale-III in their respective linguistic regions to enhance customer service, considering vacancies and administrative needs.


Difficult Areas Designation: Designate certain regions as ‘Difficult Areas’ and prioritize transfers for employees after their tenure there.


Incorporation of Additional Grounds: Include additional grounds for transfer such as marriage, spouse, medical needs, maternity, child care, and distant postings.


Spouse Employment Consideration: Make efforts to post employees in the same or nearby regions if their spouse works in Central or State Governments.


Women Employees’ Transfers: Transfer women employees to nearby locations whenever possible, ensuring their safety and access to basic amenities in remote postings.


Grievance Handling: Address grievances regarding transfer policy violations with care, ensuring detailed deliberations and proper documentation of responses.Appeals Committee: Establish a committee to review transfer appeals, ensuring they are resolved within 15 days.


Transfer Protection for Office Bearers: Clearly define the position, tenure, and applicability of transfer protection for office bearers of Associations/Unions, ensuring it does not apply upon promotion.

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Bank of India(BoI) Q2 Net profit jumps 63% , asset quality improves

 




Bank of India’s (BoI) net profit during the second quarter of financial year 2024-25 (Q2 FY25) rose 63 per cent year-on-year (Y-o-Y) to Rs 2,374 crore, backed by a 49 per cent rise in non-interest income, including treasury gains and recoveries.


 


Sequentially, the Mumbai-based lender’s net profit increased by 39.4 per cent from Rs 1,703 crore in June 2024 (Q1 FY25). Its stock closed 0.63 per cent higher at Rs 112.25 per share on the BSE on Monday.


 


BoI’s net interest income (NII) expanded four per cent Y-o-Y to Rs 5,986 crore in Q2 FY25 compared to Rs 5,740 crore in the same quarter a year ago. Net interest margin (NIM) declined to 2.82 per cent in Q2 FY25 from 3.08 per cent in Q2 FY24. Sequentially, NIM declined from 3.07 per cent in Q1 FY25.


Referring to pressure on NII and margins, Rajneesh Karnatak, managing director and chief executive, BoI, said, “Corporate loans worth Rs 20,000 crore were paid off in July, and credit growth mostly happened in August and September. Now, disbursements have picked up, which will enhance NII and margins. NIMs will rise to 2.9 per cent by the end of FY25,” Karnatak said in a post-results virtual media interaction.


 


The bank’s non-interest income increased by 49 per cent Y-o-Y to Rs 2,518 crore. Gains from the sale and revaluation of investments grew multifold to Rs 730 crore in Q2 FY25 from Rs 81 crore in Q2 FY24. Recovery from written-off accounts grew 22 per cent Y-o-Y to Rs 685 crore, according to an analyst presentation.


The lender’s provisions for non-performing assets (NPAs) more than doubled to Rs 1,427 crore in Q2 FY25 compared to Rs 678 crore in Q2 FY24. The bank made Rs 200 crore in provisions for a lumpy telecom public sector unit (PSU) account that became an NPA.


Karnatak said the bank has a Rs 1,000 crore exposure to this telecom PSU account and is in dialogue with the management for resolution. The bank also front-loaded ageing provisions for accounts that had already become NPAs.


 


The asset quality profile improved, with gross NPAs declining to 4.41 per cent in September 2024 from 5.84 per cent in September 2023. Net NPAs also declined from 1.54 per cent in September 2023 to 0.94 per cent in September 2024. The provision coverage ratio (PCR), including written-off accounts, improved to 92.22 per cent in September, compared to 89.58 per cent a year ago.


Advances grew by 14.51 per cent Y-o-Y to Rs 6.21 trillion in Q2 FY25. Retail advances grew by 21.61 per cent Y-o-Y to Rs 1.21 trillion in September 2024. The bank expects overall credit growth to be 14 per cent in FY25, backed by a pipeline of sanctioned credit of Rs 70,000 crore in corporate, retail, agriculture, and micro, small, and medium enterprises (MSME) segments, he said.


 


Total deposits increased by 10.15 per cent Y-o-Y to Rs 7.75 trillion. The share of low-cost deposits — current account and savings account (CASA) — in domestic business declined to 41.18 per cent in September 2024 from 43.13 per cent a year ago.


The bank has guided for a 13 per cent growth in deposits for FY25 and will also raise Rs 5,000 crore through infrastructure bonds to finance credit.


 


The bank’s capital adequacy stood at 16.63 per cent, with common equity tier-1 at 13.52 per cent at the end of September 2024. The bank plans to raise debt capital of Rs 2,500 crore by issuing Tier-I bonds in the second half. There are no plans for raising equity capital, Karnatak added.



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State Bank of India (SBI) Q2 PAT jumps 28% YoY


Public sector lender State Bank of India (SBI) on Friday reported a standalone net profit of Rs.18,331.44 crore for the quarter ended September 30, 2024 (Q2FY25), which was up by 27.92% over Rs.14,330.02 crore reported by the company in the year-ago period (Q2FY24). Net interest income (NII) for the quarter ended September, increased by 5.37% year-over-year to reach Rs.41,620 crore, up from Rs.39,500 crore during the corresponding period last year.


The operating profit surged by 51% year-on-year to Rs.29,294 crore in the period from July to September 2024, rising from Rs.19,417 crore during the same period last year.


The company announced in an exchange filing that the domestic net interest margin for the September quarter fell by 16 basis points to 3.27%, down from 3.43% a year earlier.


The gross advances in the second quarter increased by 15% year-on-year to reach Rs.39.2 lakh crore, whereas the growth in deposits was significantly lower at 9% year-on-year, amounting to Rs.51.17 lakh crore.


The asset quality of SBI showed improvement on a sequential basis. In absolute terms, Gross NPA was recorded at Rs.83,369 crore, down from ₹84,226 crore in June, while Net NPA decreased to Rs.20,294 crore from Rs.21,555 crore during the June quarter. For the September quarter, Gross NPA was at 2.13%, a decline from 2.21% in June, while Net NPA was at 0.53%, compared to 0.57% in the previous quarters.


Gross slippages for the quarter fell to Rs.4,951 crore, down from Rs.8,707 crore in the June quarter. Recoveries and upgrades also saw a sequential decline, decreasing to Rs.2,600 crore from Rs.3,666 crore in June.


The Capital Adequacy Ratio (CAR) was recorded at 13.76% at the conclusion of the second quarter, accompanied by a CET-1 ratio of 9.95% and a tier-1 ratio of 11.32%.

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DA increase for Bankers from November 2024

 


Today i.e. on 04.11.24 Govt declared CPI for the month of Sep'24 as 143.30 with an increase of 0.70 points from the previous month i.e. Aug'24. . Bankers DA calculator is updated hereunder on the basis of CPI for the month of Jul'24 to sep'24. Earlier the Govt vide their notification dated 22.10.20 (click to view the letter) has changed the Consumer Price base year from 2001=100 to 2016=100 for Industrial Workers.

On the basis of CPI data announced by the Govt for the months of Jul'24 to Sep'24 DA payable for the period Nov'24 to Jan'25 is 19.84% as per 12th BPS.













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Canara Bank Q2 Net profit rises 11%

 


Public Sector lender Canara Bank on October 29 reported 11% rise in net profit at Rs 4,015 crore for the quarter ended September 30, 2024.


Its total income rose 10% to Rs 34,721 crore in Q2FY25.


The bank's gross NPA (non-performing asset) ratio decreased to 3.73% for the September 2024 quarter, down from 4.14% a quarter ago, reflecting improved asset quality.


The net NPA ratio year-on-year was reduced by 24 basis points to 1% during the quarter, the lender said.


Provision Coverage Ratio (PCR) stood at 90.89% as at September 2024 against 89.22% as at June 2024, 88.73% as at September 2023.


Global Business increased by 9.42% on-year to Rs 2.36 lakh crore as at September 2024 with Global Deposits at Rs 1.35 lakh crore, 9.34% on-year and Global Advance (gross) at Rs 1.02 lakh crore 9.53% on-year.


Domestic Deposit of the Bank stood at Rs 1.24 lakh crore as at September 2024 with growth of 8.34% on-year.


Domestic Advances (gross) of the Bank stood at Rs 9.54 lakh crore as at September 2024 grew by 8.64% on-year.

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Punjab National Bank (PNB) Q2FY25 Net profit increases 145%


Punjab National Bank (PNB)
reported a substantial 2.5x year-on-year surge in its standalone net profit to Rs 4,303.5 crore for the quarter ending September 2024, compared with Rs 1,756.1 crore in the same period a year earlier. The jump in profit was helped by an over Rs 3,150-crore fall in new provisions recorded during the quarter, while the interest income surged and asset quality improved.


The PSU bank’s NII for the July-September quarter rose by 6 percent year-on-year to Rs 10,517 crore, up from Rs 9,923 crore last year.


The new provisions and contingencies recorded during the quarter fell sharply to just Rs 288 crore from Rs 3,444.2 crore, boosting the public sector lender’s bottomline.


PNB's gross NPA ratio improved to Rs 4.48 percent at the end of September, from 4.98 percent at the end of June. Net NPA ratio too improved to 0.48 percent from 0.6 percent in the preceding quarter.


The new provisions and contingencies recorded during the quarter fell sharply to just Rs 288 crore from Rs 3,444.2 crore, boosting the public sector lender’s bottomline.


PNB's gross NPA ratio improved to Rs 4.48 percent at the end of September, from 4.98 percent at the end of June. Net NPA ratio too improved to 0.48 percent from 0.6 percent in the preceding quarter.

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IDFC First Bank Q2 Net profit declines 73%


IDFC First Bank announced its July-September quarter results for fiscal 2024-25 (Q2FY25) on Saturday, October 26, reporting a decline of 73.3 per cent in net profit to ₹200.7 crore, compared to ₹751.3 crore in the corresponding period last year. The private sector bank was formed by merging the banking arm of project financer Infrastructure Development Finance Company (IDFC) and Capital First.


The bank said its net profit was impacted by prudent provisions of ₹568 crore, including Rs. 315 crore in the microfinance institution or MFI business (due to stress in the MFI industry) and ₹253 crore in one Maharashtra-based toll account (recent waiver of toll fees at Mumbai entry points).


IDFC First Bank's net interest income (NII)—the difference between interest earned and paid—rose 21 per cent to ₹4,788 crore compared to ₹3,950 crore in the year-ago period. The bank's core operating profit (excluding trading gain) grew by 28 per cent year-on-year (YOY) from Rs. 1,456 crore in Q2 FY24 to Rs. 1,857 crore in the year-ago period.


Including trading gains, core operating profit increased by 30 per cent year over year. Asset quality improved, as gross non-performing assets (NPA) were 1.92 per cent as of September 30, 2024, against 2.11 per cent as of September 30, 2023. The net NPA or bad loans was 0.48 per cent as of September 30, 2024, against 0.68 per cent as of September 30, 2023.


Provisions for Q2 FY25 stood at ₹1,732 crore, primarily because of a prudent provisioning buffer of ₹568 crore created for MFI business ( ₹315 crore). Operating income grew 21 per cent from Rs. 5,380 crore in Q2 FY24 to Rs. 6,515 crore in Q2 FY25. Operating expenses grew by 18 per cent YoY from Rs. 3,870 crore in Q2 FY24 to Rs. 4,553 crore in Q2 FY25.


Customer deposits increased by 32.4 per cent YoY from Rs. 1,64,726 crore as of September 30, 2023, to ₹2,18,026 crore as of September 30, 2024. Retail deposits grew by 37.4 per cent YoY to Rs. 1,75,300 crore from Rs. 1,27,595 crore in the year-ago period. CASA deposits grew by 37.5 per cent from Rs. 79,468 crore as of September 30, 2023 to Rs. 1,09,292 crore.


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