Government intends to lower its ownership of four Public Sector Banks

In order to comply with the minimum public shareholding requirements established by the stock market regulator, the Central Government is thinking of lowering its ownership of four public sector banks (PSBs) to 75%. The Central Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank are the four banks. According to people familiar with the situation, the government is also drafting a plan for the upcoming round of public sector bank consolidation, which may identify two more banks for privatization. 

In addition to IDBI Bank, the government announced plans to privatize two public sector banks and one general insurance company in the Union Budget for 2021–2022. The government announced earlier this month that Fairfax Financial Holdings, led by Canadian billionaire Prem Watsa, would pay Rs 52,878 crore to purchase a 60.72% share in IDBI Bank. The government wants the nation to have three or four sizable public sector banks in the long run.

Central Bank of India and Indian Overseas Bank May Be Considered for Privatisation

NITI Aayog had reportedly shortlisted Central Bank of India and Indian Overseas Bank as possible candidates for privatisation. However, the government is also examining the future structure of public sector banks as part of its broader consolidation plan.

Government to Reduce Stake in Four Banks

According to a government official, the first step is to increase public shareholding in the four banks over the next year. The banks may raise funds from the market based on their own plans, while the government may sell part of its stake through an Offer for Sale (OFS). The timing and size of the government’s stake sale will depend on market conditions.

The government aims to build three to four large public sector banks. Suggestions for consolidation may come from the banks themselves after considering factors such as technology compatibility, geographical presence and the mix of their businesses. These factors will also be considered when evaluating privatisation proposals.

The government may need to amend existing laws to carry out the privatisation of public sector banks. These changes could include amendments to the Banking Companies (Acquisition and Transfer of Undertakings) Act. The government may take up these legal changes alongside the bank consolidation process.

Read More

BOIOO urged management to address this issue of mandatory Rural Posting for Promotion

 A rural posting is now required by Bank of India in order to advance to Scale III. A number of Scale II officers are unable to apply for promotion to Scale III as a result of these new regulations. Officers have asked bank management to investigate this and change the regulations to make them more applicable. The Bank of India officers' associations have also called on management to deal with this problem.

The BOI Officers' Association questioned management about who is at fault if officers have not completed a rural posting, arguing that workers shouldn't be forced to shoulder the burden if the bank failed to post them to rural areas.

large number of Scale II officers are facing exclusion from the upcoming Scale III promotion process solely because they have not completed mandatory rural service.

The officers argue that the shortfall is not their fault, as they are liable to be posted anywhere at the Bank’s discretion (Regulation 47), and many who requested rural postings in writing were denied by zones due to administrative exigencies.

Under Para 11 of the Transfer & Rotation Policy (Branch Circular dated 04.01.2025), the Bank itself had the mandatory duty (“invariably be posted”) to place officers in rural/semi-urban areas, which Zonal administrations failed to execute.

The association has asked management to ensure strict compliance with Para 11 moving forward, give annual written notice of rural exposure status to officers, and grant an early meeting with leadership before the promotion notification is issued.

Read More

This Bank Wins EASERise 8.0 Data Quality Recognition Award for FY 2025–26

The Indian Banks’ Association (IBA) has announced the EASERise 8.0 Award winners for FY 2025–26. State Bank of India (SBI) secured the overall winner position, followed by Punjab National Bank (PNB) and Canara Bank.

Bank of India (BOI) has achieved a notable recognition by securing the Winner position in the Overall EASE Data Quality Recognition Awards. The award acknowledges the quality of data submitted by public sector banks for EASE assessments, including accuracy, correctness, minimal revisions and timely submission.

Additionally, SBI emerged as the winner in the Innovation and Risk and Resilience themes, while Bank of India secured the First Runner-up position in the Innovation category.

This achievement reflects Bank of India’s commitment to data quality, operational excellence and innovation in banking.

1. Overall Winners

Award Position	Bank Name
Winner	State Bank of India (SBI)
First Runner-up	Punjab National Bank (PNB)
Second Runner-up	Canara Bank

2. Theme-wise Winners

S. No.	Theme	Winner	First Runner-up	Second Runner-up
1	Risk and Resilience	State Bank of India (SBI)	Punjab National Bank (PNB)	Indian Bank
2	Innovation	State Bank of India (SBI)	Bank of India (BOI)	Canara Bank
3	Socio-economic Impact (for Viksit Bharat)	Bank of Baroda (BoB)	Union Bank of India	Canara Bank
4	Excellence	Punjab National Bank (PNB)	Indian Bank	State Bank of India (SBI)

3. Top Improvers

Award Position	Bank Name
1st	Indian Overseas Bank (IOB)
2nd	Punjab & Sind Bank
3rd	UCO Bank

4. Overall EASE Data Quality Recognition Awards

These awards recognise public sector banks for the quality of data submitted for EASE assessments, based on data correctness, accuracy, minimal revisions and timely submissions.

Award Position	Bank Name
Winner	Bank of India (BOI)
First Runner-up	Bank of Maharashtra
Second Runner-up	Central Bank of India

Read More

Rs 575.40 crore Loan NPA in Bank of India(BOI), Account classified as Fraud

The ₹575.40 crore non-performing asset (NPA) account of Future Enterprises Ltd. (FEL), which is promoted by Kishore Biyani, has been designated as fraud by the Bank of India. There is an outstanding balance of ₹575.40 crore in the account. The classification is not anticipated to necessitate any additional provisioning or have an additional effect on the bank's earnings and net interest margins because the bank has already made 100% provisioning for the entire amount. In accordance with SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, the bank has also reported the issue to the Reserve Bank of India (RBI). Since FY 2022–2023, Future Enterprises Ltd. has been subject to the Corporate Insolvency Resolution Process (CIRP), which is overseen by the National Company Law Tribunal (NCLT).

Unlike Future Retail, which ran the front-end stores, Future Enterprises was designed to hold the group’s physical assets, manufacturing infrastructure, and critical investments. The company owned the back-end supply chain, logistics frameworks, textile manufacturing facilities, and valuable joint-venture stakes in prominent insurance businesses, specifically Future Generali India Life and General Insurance.

The debt in this account was heavily tied to the group’s massive ₹24,713-crore restructuring package announced in August 2020. Future Enterprises was scheduled to absorb 19 other group entities operating across retail, wholesale, and warehousing operations, before transferring the consolidated retail infrastructure over to Reliance Retail. When the transaction ultimately collapsed in April 2022 due to lack of secured lender support, the underlying debt structures became unsustainable, pushing the account into a hard default.

The path to this fraud classification was driven by exhaustive forensic scrutiny:

Following the default, the consortium of lenders led by Central Bank of India appointed forensic auditor J C Kabra & Associates. This audit followed a Ministry of Finance directive mandating detailed transactional reviews for stressed loan exposures exceeding ₹50 crore.

Concurrently, market regulator SEBI initiated separate forensic audits examining the company’s financial records and high-value Related Party Transactions (RPT) exchanged with sister affiliates like Future Retail, Future Consumer, and Future Supply Chain.

Under RBI guidelines, a commercial bank classifies an NPA account as fraud when independent audits confirm systemic anomalies. These include the misappropriation of funds, criminal breach of trust, manipulation of books of accounts, or routing funds through fictitious/unauthorized third-party entities.

Future Enterprises has been operating under the Corporate Insolvency Resolution Process (CIRP) since 2023. While Bank of India has safely insulated its balance sheet by taking a 100% provision on the ₹575.40 crore, any recovery of this capital now depends on the liquidation of FEL’s remaining investments. Most notably, the company’s premium insurance assets are moving through resolution, with the Central Bank of India emerging as the successful bidder to acquire FEL’s remaining stakes in the Future Generali ventures.

Read More

UFBU Seeks Review of PLI Scheme for Bank Officers, Demands Fair Incentives for All Employees

The United Forum of Bank Unions (UFBU) has urged the Indian Banks’ Association (IBA) to review the Performance Linked Incentive (PLI) scheme for bank officers, highlighting concerns over fairness, uniformity and the exclusion of a section of senior officers from incentive payments.

In a letter dated 9 October 2026, addressed to the Chief Executive of the Indian Banks’ Association, Mumbai, UFBU requested an early meeting to discuss modifications to the revised PLI formula and resolve the matter through mutual consultation.

UFBU Raises Concerns Over the Revised PLI Scheme

According to the letter, the Government advised banks in November 2024 regarding the revised PLI scheme applicable to officers in Scale IV and above. Since then, UFBU has consistently raised objections with the IBA on the following grounds:

• Bilateral discussions: Any change or modification to the scheme should be discussed bilaterally with the unions and associations.

• Collective performance: The fundamental principle of PLI should remain linked to the collective performance of the bank.

• Uniformity: The incentive norms should be uniform rather than creating disparities among officers.

UFBU has welcomed the decision to initiate discussions with the IBA on proposing modifications to the scheme to address the concerns raised by the unions and associations.

20% of Senior Officers Reportedly Received No PLI

One of the major concerns highlighted in the letter is that the revised PLI scheme for officers in Scale IV to Scale VIII for the financial year 2024–25 has already been implemented, and higher incentive amounts have been disbursed to certain officers at a substantial cost.

However, UFBU points out that approximately 20% of officers in Scale IV to Scale VIII have not received any PLI.

The forum argues that these officers have also contributed to the overall performance of their respective banks. Therefore, excluding them from incentive payments raises questions about fairness and the principle of collective achievement.

UFBU Seeks Review of PLI for 2024–25

Pending discussions on modifications to the scheme for 2025–26 and subsequent years, UFBU has requested a review of the PLI already paid for 2024–25.

The demand covers:

• A review of PLI payments made to award staff and officers up to Scale III.

• A review of officers in Scale IV to Scale VIII who did not receive any PLI.

• Consideration of the contribution made by all employees towards the bank’s overall performance.

• Protection of the principles of equity, fairness and uniformity under the existing Bipartite Settlement/Joint Note framework.

Demand for an Early Meeting with IBA

UFBU has requested the IBA to arrange a meeting at the earliest so that the issues can be discussed and resolved amicably and mutually.

The letter has been signed by representatives of major bank unions, including AIBEA, AIBOC, NCBE, AIBOA and BEFI, along with other UFBU constituents.

The PLI issue has once again brought the focus on how performance incentives should be distributed in the banking sector. UFBU's position is that incentives should reflect the collective contribution of employees and follow transparent, fair and uniform principles.

The next step will be the discussions between UFBU and the IBA and whether the concerns regarding officers who received no PLI, along with the requested review of payments for 2024–25, will be addressed.

Stay tuned to Latest Bank Update for the latest developments on banking news, employee issues, PLI, wage-related matters and important updates from the banking sector.

Read More

One of the Unit of Bank of India Officers Association(BOIOA) Announces to pay Rs 2,600 as Gratitude Amount to Members

A ₹2,600 reward has been announced by the Bank of India Officers’ Association (BOIOA), Delhi Unit, for its members who supported the organization during the recent agitation over 5-Day Banking and other unfulfilled demands. The General Secretary of BOIOA Delhi Unit stated in a letter dated October 8, 2026, that members were understandably dissatisfied with the postponement of the strike called by the United Forum of Bank Unions (UFBU). The demand for 5-Day Banking and other unresolved issues were the reasons behind the planned strike. Additionally, the previous agitation program was canceled.

The Delhi Unit said that it had also sought clarification from AIBOC/UFBU regarding the reason of strike deferment, but till now UFBU has not explained the reason of strike deferment.

The association appreciated the trust, commitment and support shown by its members during the difficult period. It said that members demonstrated courage, discipline and a strong sense of responsibility, which reflected the spirit of unity, commitment and organisational solidarity among its members.

The Executive Committee of BOIOA Delhi Unit, in its meeting held on October 8, 2026, has decided to provide a gratitude amount of ₹2,600 to each eligible member, except the office bearers of the Delhi Unit. The amount is being given as a token of appreciation to members who remained firm in their support for the organisation and the Delhi Unit during the struggle.

This amount is being paid as the bank employees were called to work on Sunday – 27 September 2026. The Government had ordered to open all banks on 27 September for convenience of customers, as strike was scheduled from 28 to 30 September 2026.

The association said that the amount cannot compensate for the support, commitment and sacrifice made by its members, but it is a humble gesture to recognise their contribution and loyalty to the organisation.

BOIOA Delhi Unit also said that although the strike has been deferred, its struggle and spirit remain undeterred. The association assured members that it would continue to protect their interests, rights and dignity and would raise their collective voice before the concerned authorities and responsible forums.

Read More

Compensation to Officers for working on 27th Sep,2026

 

The Indian Banks' Association (IBA) has been asked by the United Forum of Bank Unions (UFBU) to compensate officials who worked on Sunday, September 27, 2026, with one day's salary. IBA has consented to accept this demand and bring the matter up for approval at its upcoming Managing Committee meeting, according to UFBU.

Officers who reported for duty on September 27, a Sunday and holiday, are the subject of the demand. For the officers who worked on that day, the bank unions are requesting remuneration equal to one day's compensation.

The Indian government ordered banks to stay open on Sunday, September 27, 2026, for the convenience of customers, despite the proposal that the three-day strike take place from September 28 to September 30, 2026.

Bank employees across India had to report to work on Sunday. Normally, officers who work on a Sunday receive ₹2,000 as compensation, while bank clerks are paid an amount equal to twice their one-day salary.

But bank employees demanded that they should be paid their normal one-day salary for working on that day.

UFBU said it was hopeful that the issue would be taken up in the forthcoming Managing Committee meeting and receive the necessary approval. After approval, the member banks of the IBA can be advised to make the payment to the eligible officers.

The letter was jointly signed by representatives of the major bank unions under the UFBU, including AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF and INBOC.

The development is significant for bank employees who were required to work on September 27 despite it being a Sunday holiday. However, the letter indicates that the payment is still subject to approval by the IBA Managing Committee.

Read More

Thieves Break Into Bank of India(BOI) Branch , Escape Without Stealing Money

Thieves committed a daring crime in the safe zone of the district Saraikela-Kharsawan in Jharkhand.

At midnight on Friday, thieves broke into the Bank of India branch at the district headquarters, which is directly behind the offices of the Superintendent of Police (SP) and Deputy Commissioner (DC).

The incident happened on Friday nite at around 12:30 a.m. Using a rod, two robbers gained access to the bank's main grill. CCTV footage shows that one of the robbers had covered his face with a vest and was only wearing his underwear. The second thief had a vest covering his face and was dressed in shorts. The robbers entered the bank and made an unsuccessful effort to crack the lock on the front cupboard.

The two thieves heard the sound of people moving outside the bank and fled from the bank. The two thieves remained inside the bank for about half an hour, then fled the scene without stealing anything. On Saturday morning, when local villagers noticed the lock on the bank’s main grill was broken, they immediately informed the Saraikela police and the bank manager.

People have raised questions over the security of Bank. This bank branch had no security guards. The bank management had left the security of lakhs of rupees to just two CCTV cameras.

Bank should improve the safety of its branches. The cases of Bank robbery are increasing day by day.

Read More