Gold Loan Fraud of Rs. 1.24 crore in PSU Bank

A significant gold loan fraud case was recently discovered at the Bank of India. In the Bank of India branch in Saraidhela, 28 individuals turned in 3.5 kg of phony gold in exchange for a Rs. 1.24 crore bank loan. A police report has been made against the business correspondent, gold valuer, and borrowers who were complicit in this fraud.

The accounts turned non-performing and the gold secured by the loan was revalued, which is when the issue was discovered. The fact that the gold being held in safe custody was counterfeit stunned the branch officers. Vishwa Pratap Singh, the senior branch manager, filed a police report at the Saraidhela station.

From January 2022 to January 2023, loans were made secured by counterfeit jewelry. Loan accounts quickly became non-performing assets (NPAs) due to non-payment by borrowers. The bank sent notifications to the loan holders to collect the unpaid balance in response to the circumstances. The loan holders received notice that if the installments were not deposited, their jewels would be put up for auction. When the loan holders ignored the notices, though, bank officials were taken aback.

In order to open the sealed packages containing the mortgaged valuables, a committee was established. The jewelry was reassessed and a video was completed. Reassessment revealed that the jewelry was, in fact, phony.

In March, the Reserve Bank of India had asked banks to share with it information on frauds reported in gold loans, actions taken by them to recover the money and defaults in the portfolio.

The RBI also asked banks to review their lending processes to check if they are in compliance with the regulator’s gold loan guidelines. The RBI sought this information after it found that employees of two state-run banks manipulated its system to meet gold loan targets.

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BoB, PNB among 6 PSU banks with high NPAs

Non Performing asset (NPA) is a loan or advance for which the principal or interest payment has remained overdue for a period of 90 days or more. According to data from Trendlyne, SBI, Bank of Baroda, and PNB are among the 6 PSU banks that reported the highest NPAs in Q3 of FY24. Here's the list:

Bank of India(BoI)

The net NPA of Bank of India stood at 1.41% in Q3FY24, which is the highest among PSU Banks. The PE ratio of the stock is 9.66. Bank of India has a market cap of Rs 61,870 crore.

Union bank of India

Union Bank of India reported a net NPA of 1.08% in Q3FY24. The PE ratio of the stock is 7.74. The firm's market cap is at Rs 1,02,773 crore.

Punjab National Bank (PNB)

Punjab National Bank (PNB) reported a net NPA of 0.96% in Q3FY24. The PE ratio of the stock is at 17.76. Punjab National Bank's market cap is at Rs 1,35,490 crore.

Bank of Baroda(BoB)

The net NPA ratio of Bank of Baroda stood at 0.7% in the December quarter of FY24. The PE ratio of the stock is 7.3. It has a market cap of Rs 1,38,153 crore.

State Bank of India (SBI) 

The net NPA ratio of the State Bank of India (SBI) stood at 0.64% in Q3FY24. The PE ratio of the stock is 10.26. SBI has a market cap of Rs 6,65,731 crore.

Indian Overseas Bank(IOB)

Indian Overseas Bank reported a net NPA of 0.62% in the December quarter of FY24. The PE ratio of the stock is at 50.36, while its market cap is at Rs 1,26,457 crore.

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Bank of India Female Employee commits suicide due to Transfer

 

A tragic tragedy happened at Chakradharpur , a city in the West Singhbhum district of Jharkhand. Geeta Pradhan, a female bank(Bank of India Jharkhand) employee, hanged herself to end her life. She held a position at Bank of India. Geeta Pradhan was transferred from Chakradharpur to Koderma, which appears to have contributed to her depressive episode. Ashish Kumar Pradhan, her spouse, is employed with the Chakradharpur railway division in Tatanagar in the electrical department. Her two sons are five years old and twelve years old, respectively. See the government's instructions for assigning and reassigning female bank employees.

Read More : Government guidelines on posting and transfer of PSU Bank Female staff

The event happened in Harijan Basti, Chakradharpur, on Tuesday morning at around ten in the morning. Geeta Pradhan had fed her two sons breakfast and sent them to school before making this dramatic decision. She went to the room under construction on their house's upper level after they left. She is thought to have killed herself by hanging herself with a rope fastened to the room's door frame.

Her husband, Ashish Pradhan, went upstairs to find his wife hanging after failing to locate her within the home. He reported the event right away to the Chakradharpur police station. After the police arrived, they freed Geeta Pradhan from the rope and took her to the hospital in the Chakradharpur subdivision. Sadly, the medical professionals pronounced her dead.

The news of this tragic incident has left the residents of Harijan Basti mourning. Upon hearing about the incident, a gathering of bank employees and railway workers assembled outside Geeta Pradhan’s house. The police are now taking legal action after gathering information about the entire incident. 

Source : hellobanker.in

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Bank of India(BoI) Q3 net profit jumps 62%

 

Public sector lender Bank of India (BOI) on February 2 reported a net profit of Rs Rs 1,869.5 crore for the December quarter of the financial year 2023-24, up 62.4 percent from the year-ago period from Rs 1,151 crore.

The bank's gross non-performing asset (NPA) stood at 5.35 percent, down from 7.66 percent in the year-ago period. On the other hand, net NPA stood at 1.41 percent, improving from 1.61 percent.

State-owned Bank of India (BoI) on Friday posted a 62 per cent jump in net profit to Rs 1,870 crore in the December quarter on account of decline in bad loans. The Mumbai-headquartered bank had earned a net profit of Rs 1,151 crore in the year-ago period.

The lenders' total income increased to Rs 16,411 crore during the third quarter of the ongoing fiscal against Rs 14,160 crore a year ago, BoI said in a regulatory filing.

The interest income of the bank rose to Rs 15,218 crore as against Rs 12,728 crore in the third quarter of the previous year.

Gross Non-Performing Assets (NPAs) of the bank declined to 5.35 per cent of the gross loans by the end of December 2023 from 7.66 per cent a year ago.

Similarly, net NPAs, or bad loans, came down to 1.41 per cent from 1.61 per cent at the end of the third quarter.

Capital Adequacy Ratio of the bank improved to 16.06 per cent as against 15.60 per cent at the end of December 2022.

During the quarter ended December 31, 2023, the bank issued additional 44,91,01,796 equity shares of face value Rs 10 each at an issue price of Rs 100.20 under Qualified Institutional Placement (QIP) on December 11, 2023 and raised an amount of Rs 4,500 crore, it said.

Accordingly, the shareholding of the Government of India in the bank has reduced to 73.38 per cent as on December 31, 2023

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Latest Bank merger news of PSU banks and PSU Insurance Company

 

A government document shared on social media has triggered speculation about possible PSU bank mergers between Union Bank and UCO Bank, and Bank of India and Bank of Maharashtra. The document, whose source couldn't be verified, said that a Parliamentary committee will hold discussions with four PSU banks in the first week of January under banking laws, which govern mergers and acquisitions, among other things.

However, the government has not yet provided official information regarding the merger. Neither of the four PSU banks mentioned have made any stock exchange filings in this regard.

The document being circulated on X (formerly Twitter) is a government PDF issued in the name of Ramesh Yadav, Under Secretary of the Government of India. The letter is issued to the Governor, Reserve Bank of India, Chairman of LIC, IRDAI, and NABARD, along with MD and CEOs of UCO Bank, Bank of Maharashtra, Bank of India, and Union Bank of India.

The PDF is also addressed to CMDs of New India Assurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company, and MD & CEO of SBI Life Insurance Company. The subject of the alleged government PDF states 'Study Visit programme of the Committee on Subordinate Legislation, Lok Sabha to Mumbai and Goa from 2 to 6 January 2024'.

The 2-day programme includes informal discussions with the representatives of Union Bank of India and UCO Bank on January 2, and with representatives of Bank of Maharashtra and Bank of India on January 4, 2024, on rules/regulations framed under Banking Regulations Act 1949 and other relevant Acts as applicable to them and the regulatory mechanism in post-merger scenario.

The Finance Ministry has reportedly issued a clarification, saying that this is a parliamentary committee on subordinate legislation, and it has no connection whatsoever with the policies of bank mergers, according to CNBC-Awaaz. Amid the merger buzz, the ministry reportedly changed the agenda of its meeting. According to the new agenda, there is no mention of the word “Merger”, which simply means that there is no proposal for a merger between Union Bank of India and UCO Bank, Bank of India, and Bank of Maharashtra, said CNBC Awaaz in its report.

Meanwhile, No proposal to merge the public sector banks is being considered by the government and the discussions were part of a ‘routine exercise, Reuters also reported citing two sources from the Ministry of Finance.

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Bank of India(BoI) Q2 Net profit rises 52%

 

Bank of India on November 4 reported a 52 percent rise in its net profit to Rs 1,458.43 crore in the second quarter of the current financial year. In the year-ago period, the state-owned lender reported Rs 960 crore net profit.

This was on the back of sharp improvement in the asset quality and increase in margins of the lender.

On a sequential basis, net profit has fallen 6 percent.

In the reporting quarter, the asset quality of the state-owned lender improved sharply with gross non-performing assets (NPA) ratio stood at 5.84 percent, as compared to 8.51 percent in a similar period last year.

Similarly, net NPA ratio fell to 1.54 percent as on September 30, 2023, as against 1.92 percent in a year ago period, and 1.65 percent in a quarter ago period.

In absolute terms, gross NPA of the bank stood at Rs 31,719 crore as on September 30, 2023, as compared to Rs 34,582 crore as on June 30, 2023, and Rs 42,014 crore as on September 30, 2022.

Whereas, net NPA stood at Rs 7,978 in July-September quarter, as against Rs 8,119 crore in a quarter ago period, and Rs 8,836 crore in a year ago period.

In reporting quarter, Provision Coverage Ratio (PCR) improved by 62 basis points (bps) on-year, as per release. PCR of the state-owned bank stood at 89.58 percent as on September 30, 2023, as against 88.96 percent in a year ago period.

Net interest Income

The net interest income (NII) of the bank in July-September quarter rose 13 percent on-year to Rs 5,740 crore, as compared to Rs 5,083 crore in a year ago period.

However, on a quarterly basis, NII of the bank fell 3 percent.

The interest income of the bank in the reporting quarter was Rs 14,971 crore, and interest expanded stood at Rs 9,231 crore.

Net interest margins of Bank of India by 4 bps in reporting quarter to 3.08 percent. In a year ago period, it stood at 3.04 percent, and 3.03 percent in a quarter ago period.

Deposits and advances

Global Business increased by 9.25 percent on-year from Rs 11,41,356 crore in September 2022 to Rs 12,46,879 crore in September 2023.

Global Deposits increased by 8.68 percent on-year from Rs 6.5 lakh crore in September 2022 to Rs 7.03 crore in September 2023.

Global Advances increased by 10 percent on-year from Rs 4.94 lakh crore in September 2022 to Rs 5.43 lakh crore in September 2023.

Domestic Deposits increased by 8.61 percent on-year from Rs 5.51 lakh crore in September 2022 to Rs 5.99 lakh crore in September 2023.

Domestic Advances increased by 9.80 percent on-year from Rs 4.12 lakh crore in September 2022 to Rs 4.53 lakh crore in September 2023.

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Bank of India(BoI) Q1 Results: Net profit jumps 176%

 

Public sector lender Bank of India on July 28 reported a 176 percent jump in net profit at Rs 1,551 crore in the first quarter of the current fiscal. It had clocked a net profit of Rs 561 crore in the year-ago quarter.

The bank's net interest income increased by 45 percent on a year-on-year basis (YoY ) to Rs.5,915 crore.

The net interest margin (NIM) increased by 51 bps to 3.37 percent in the April-June FY24 quarter against 2.87 percent in the corresponding quarter last year.

The gross non-performing assets of the bank declined to 6.67 percent from 9.30 percent in the same quarter of the previous year, while its net non-performing assets (NNPAs) declined by 1.65 percent from 2.21 percent last year.

Domestic deposits of the bank increased by 7.98 percent YoY to Rs.5.89 lakh crore in the quarter. Current account and savings account (CASA) went up by 7.56 percent YoY to Rs. 2.6 lakh crore in the April-June FY24 quarter and CASA ratio stood at 44.52 percent.

Domestic advances increased by 7.98 percent YOY to Rs. 4.33 lakh crore.

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Central Information Commission impose penalty on BOI officers

 

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