State Bank of India(SBI) Ordered to Pay Rs.7 Lakh Compensation for Delay

The State Bank of India (SBI) has been ordered by the District Consumer Disputes Redressal Commission, Kanpur Nagar to compensate an advocate who was unable to attend a recruitment exam due to the bank's failure to deposit his examination fee with ₹7,00,000. According to the Commission, the complainant suffered "irreparable physical, mental, and economic loss" as a result of this failure. 

 On October 16, 2018, an advocate named Mr. Avnish Verma filed a complaint against the SBI Chairperson, SBI Nodal Officer, and Branch Manager of the SBI Krishna Nagar Branch in Kanpur Nagar. Mr. Verma was eligible to take the UP Public Service Commission's (UPPSC) 2015 Assistant Prosecution Officer (A.P.O.) preliminary test. He deposited the necessary ₹225 at SBI Krishna Nagar in order to take the main exam.

Nevertheless, the fee was not deposited into the UPPSC account by the bank clerk. Rather, a general receipt (No. 41514396) that was invalid for the examination procedure was issued by the clerk. Mr. Verma claimed that the bank employee's negligent, irresponsible, and malevolent actions were to blame for this. 

 The candidate had to amend the fee information on the UPPSC website in accordance with the exam regulations. Two days after paying the charge, Mr. Verma attempted to update the data, but the attempt was unsuccessful. The bank only told him that there was a "technical issue" and requested that he try again at a later time. The update failed once more on December 11, 2015.

Unfortunately December 12, 2015 was Second Saturday (bank holiday) and December 13, 2015 was Sunday (UPPSC deadline). Because of this, he could not complete the process and ultimately missed the opportunity to appear in the A.P.O. 2015 Main Exam. Mr. Verma stated that this mistake caused serious damage to his career prospects, along with mental and financial loss.

Complaint lodged in RBI Ombudsman 

The complainant submitted a complaint to the RBI's Banking Ombudsman on December 11, 2015. On April 8, 2016, the SBI Branch Manager responded by acknowledging the error in a letter of apologies. Mr. Verma refused to accept the Banking Ombudsman's subsequent ruling for SBI to pay ₹10,000 in compensation. 

 He then filed a claim for ₹20,000,000 in compensation with the Consumer Commission. Despite receiving notices, SBI representatives failed to show up before the Commission. Consequently, on May 14, 2019, the Commission moved forward ex-parte. SBI did not pay the ₹300 fee imposed by the Commission, despite later filing a recall application. As a result, on November 17, 2022, their written statement was ruled inadmissible, and they were prohibited from testifying.

The complainant, however, submitted strong documentary proof, including Fee deposit receipt, UPPSC notifications, Complaint to Banking Ombudsman, SBI apology letter, Marksheets and other documents showing past exam performance.

Commission’s Findings

The Commission held that:

* SBI clearly failed to deposit the fee.

* The mistake prevented the complainant from appearing in a major competitive exam.

* This caused irreparable loss to his career.

* The bank admitted its mistake through the apology letter.

* Even the Banking Ombudsman had found SBI at fault.

Final Order of the Commission

The Commission partially allowed the complaint and ordered SBI (all opposite parties jointly and severally) to:

* Pay ₹7,00,000 (Seven Lakh) as lump sum compensation For the complainant’s career loss and mental, physical, and financial suffering.

* Pay 7% simple annual interest From the date of filing the complaint (October 16, 2018) till actual payment.

* Pay ₹10,000 as litigation cost.

The bank must comply with the order within 45 days from the date of judgment.

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State Bank of India(SBI) Q2 net profit rises 10% YoY

State Bank of India(SBI)’s Q2 FY26 net profit rose 10 percent year-on-year to Rs 20,159.7 crore, driven significantly by proceeds from the lender’s partial stake sale in Yes Bank. Net interest income rose 3.3 percent year-on-year to Rs 42,985 crore from Rs 41,620 crore for the July-September quarter.

India’s largest PSU bank SBI said it divested 13.18 percent of its equity holding in Yes Bank on 17 September 2025 at Rs 21.50 per share, generating a profit of Rs 4,593.22 crore. The gain has been recognised under exceptional items and will be transferred to the capital reserve in due course.

SBI’s asset quality improved sequentially during the quarter. Gross NPA ratio declined to 1.73 percent from 1.83 percent, with gross NPAs dipping to Rs 76,243 crore from Rs 78,039.7 crore. Net NPA ratio eased to 0.42 percent from 0.47 percent, while net NPAs fell to Rs 18,460 crore from Rs 19,908 crore.

Provisions rose to Rs 5,400 crore compared with Rs 4,757 crore in the previous quarter and Rs 4,506 crore a year earlier. Pre-provision operating profit fell 10.6 percent sequentially and 6.77 percent year-on-year.

The rise in profitability was also aided by certain one-time factors during the quarter. SBI recorded a one-off gain of Rs 4,593.22 crore from its stake sale in Yes Bank and an additional Rs 25.46 crore from the sale of its stake in Jio Payments Bank.

Domestic net interest margin (NIM) dropped 18 basis points to 3.09 percent for the quarter versus 3.27 percent in the year ago period.

Operating profit for Q2 rose by 8.91 percent year-on-year to Rs 31,904 crore from Rs 29,294 crore in Q2 FY25.

The lender's whole bank advances grew by 12.73 percent year-on-year, while domestic advances grew by 12.32 percent year-on-year for the September quarter.

Retail Advances grew by 15.09 percent year-on-year, led by SME advances growth at 18.78 percent year-on-year, and by agri advances growth at 14.23 percent year-on-year and retail personal advances growth at 14.09 percent.

The lender reported interest income of Rs 1,19,654 crore in the quarter under review, up 5 percent from Rs 1,13,871 crore in the corresponding period of the previous financial year.

Meanwhile, the interest expended by the public lender stood at Rs 76,670 crore in the quarter under review, up 6 percent from Rs 72,251 crore in the corresponding quarter of the previous financial year.

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State Bank of India (SBI) Manager (Credit Analyst) Recruitment 2025 Notification Released, Apply Online

State Bank of India (SBI) has released notification for recruitment of candidates to the post of Manager (Credit Analyst). All details related to this recruitment are given below.

SBI Bank Manager (Credit Analyst) Recruitment 2025 Overview

Particulars	Details
Recruitment Authority	State Bank of India (SBI)
Post Name	Manager (Credit Analyst)
Category	Specialist Cadre Officers (SCO)
Vacancies	63
Mode of Application	Online
Application Dates	11 September 2025 – 15 October 2025
Official Website	www.sbi.co.in

SBI Bank Manager (Credit Analyst) Recruitment 2025 Important Links

Notification

Apply Online

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Does State bank of India treat officers of merged associate banks differently? The Telangana High Court received the case

The merger of five affiliate banks with the State Bank of India (SBI) is a significant matter that the Telangana High Court has chosen to consider. A division bench led by Justice G.M. Moinuddin and Chief Justice Aparesh Kumar Singh accepted an appeal submitted by P.T.M. Gopala Krishna and others.

The government orders that were issued during the merger of State Banks of Bikaner and Jaipur, Hyderabad, Mysore, Patiala, and Travancore with SBI have been contested by the petitioners. They maintained that the revised terms of service that were implemented following the merger were arbitrary and unlawful.

They claim that the March 2017 option letters compelled workers to resign or accept the revised terms of employment. They also argued that the top general manager, who lacked the legal authority to establish service conditions, was the one who issued these letters. Only the SBI Central Board was authorized to make such judgments under the State Bank of India Act, 1955. Workers at merging associate banks have complained that they do not receive the same benefits and perks as regular SBI workers.

According to the statement, service jurisprudence is unaware of this so-called choice letter.If a permanent employee or officer disagrees with the new terms and conditions that management has imposed, they cannot be forced to leave. Furthermore, no terms and conditions of service authorized by the Central Board of the Transferee Bank, State Bank of India, are mentioned in the so-called offer of employment letter dated March 29, 2017. Thus, it is evident that CGM lacks the power to unilaterally issue employment offer letters that have not been authorized or approved by the Transferee Bank's Central Board.

It goes on to say that a review of the choices made under Clause No. 3 reveals that Associate Bank employees have experienced hostile discrimination. Probationary officers and trainee officers at SBI will receive four more increments, while those at Associate Banks will not receive those same increments, as stated explicitly in Clause 3(b) of the Annexure to the offer letter. Put another way, there is flagrant and obvious prejudice against probationary officers and trainee officers of associate banks when it comes to raises.

SBI previously purchased State Bank of Indore on August 28, 2010, and State Bank of Saurashtra on August 23, 2008.While acquiring State Bank of Saurashtra, the terminal benefits, pension, gratuity, and Bank’s Contribution to Provident Fund (with interest), were given to them.

As stated in Section 2(a) of the Terms & Conditions of Service Applicable to Officer Employees of State Bank of Indore (SBIN), SBI provided the same terminal benefits, pension, gratuity, and Bank's Contribution to Provident Fund (with interest) to its officers during the acquisition of SB Indore.

As a result, based on previous experience, the officers of the Associate Banks had a right to expect that SBI would provide them with comparable advantages. Their petition had previously been denied by a one-judge panel. The petitioners lacked the legal standing to contest the government's orders, the court had decided. Additionally, it noted that the majority of associate bank executives had willingly switched from the contributory provident fund system to the pension plan.

However, the appellants have now argued that the earlier judgment ignored crucial legal issues and wrongly relied on developments that happened after their case was filed.Taking note of these submissions, the High Court bench has issued notice to the Reserve Bank of India (RBI) and has posted the case for further hearing.

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State Bank of India (SBI) Q1 net profit rises 12.48%

The country’s largest lender State Bank of India (SBI) for the first quarter ended June 30, 2025 reported 12.48% Year on Year (YoY) growth at Rs.19,160 crore due to operational efficiency and treasure gains.

The bank’s Net Interest Income (NII) for the quarter at Rs.41,072 crore decreased by 0.13% YoY. The domestic Net Interest Margin (NIM) for the quarter fell 33 bps and stood at 3.02% as compared with 3.35%. During the quarter the bank’s loan loss provisions increased 9.21% to Rs.4,934 crore.

“The results for Q1 FY206 highlight robustness, continued excellence and significant long term strength,” said C.S. Setty, Chairman, SBI.

“The bank remains well capitalized and our capital adequacy ratio has improved and based on the current profitability and growth trajectory of the bank, we believe we have sufficient headroom to take care requirement of business growth.

“The bank has raised equity capital of Rs.25,000 core during the current quarter, which will support additional loan growth of approximately Rs.2.5 trillion,” he added.

The bank’s advances at Rs.42.5 lakh crore grew 11.61% Y-o-Y with domestic advances growing by 11.06% YoY. While SME advances grew by 19.10% Y-o-Y, Agri advances grew by 12.67% Y-o-Y and Retail personal advances and Corporate advances registered Y-o-Y growth of 12.56% and 5.70% respectively. The bank’s deposits grew by 11.66% Y-o-Y. 

The GNPA reduced 7.34% Y-o-Y to Rs.78,040 crore. NNPA also reduced 7.64% to Rs.19,908 crore.Gross NPA ratio at 1.83% improved by 38 bps Y-o-Y and Net NPA ratio at 0.47% improved by 10 bps Y-o-Y.Provision Coverage Ratio (PCR) stood at 74.49% Slippage Ratio for the quarter improved by 9 bps YoY and stood at 0.75%.Credit Cost for the quarter stood at 0.47%. The Capital Adequacy Ratio (CAR) as at the end of the quarter stood at 14.63%.

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Complaint Against DGM for Misconduct and Abusive Language in PSU Bank

The State Bank of India, Panchkula administrative office employees have officially filed a complaint, pointing out the Deputy General Manager's alleged misbehavior, hostile conduct, and use of derogatory language, which has resulted in a hazardous work environment and poisonous workplace culture. 

Staff and officers from State Bank of India's Administrative Office (AO) and Regional Business Office (RBO) in Panchkula filed a formal complaint with the State Bank of India Officers' Association at the Local Head Office in Chandigarh on June 24, 2025. In the complaint, the Deputy General Manager (DGM) (Business and Operations) is accused of misconduct, using abusive language, and engaging in behavior that has created a toxic and unhealthy work environment.

Allegations of Misconduct and Abusive Language

According to the complaint letter, the DGM has been accused of using abusive and insulting language towards employees. The staff allege that this behavior extends to senior officers, including Assistant General Managers and Chief Managers (CM). 

The letter mentions that the officer has frequently shouted at and threatened staff during office hours. Specific remarks highlighted in the complaint include phrases like "I will slam you to the ground," "All of you are idiots," "The entire AO staff is mad," "Bring him by the neck," "You all are garbage," and “Get out of my cabin.”

Concerns Over Mental Distress and Workplace Safety

The complaint emphasizes how the officer's actions have led to a poisonous workplace culture and a hazardous working environment. Deep emotional suffering, including anxiety, depression, and in certain cases, suicide thoughts, has been reported by staff personnel. Additionally, the petition notes that staff members are afraid to work under the DGM and are afraid to visit the the office due to the hostile atmosphere.

Request for Action

In the letter, the staff members have requested the Officers' Association to take up the matter with higher management. They seek necessary action to restore a safe and respectful work environment at the office.

Association Says Issue Taken Up Immediately with Circle Management

Speaking to Kanal, the association representative stated “Once we received the letter, we immediately took up the issue with the Circle Management. The Circle Management also took necessary action. A General Manager-level officer is heading the investigation.On June 26, an investigation was already conducted by him, and he was present at the office for the whole day. 

All the affected members have given their statements to him. The bank has taken necessary action, and we are closely following up the issue. We assure that whatever action is required will be taken because our Circle Management is very particular that such incidents should not happen in any office. The incident was reported just three days ago, and we are monitoring the situation closely. Let us wait and see how it unfolds over the next 2-3 days.”

The complaint by SBI AO/RBO Panchkula staff lists detailed incidents and includes staff signatures, reflecting their collective concerns about the work environment under the current leadership. The issue has been taken up by the association and is currently under internal investigation.

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Vigilance investigation finds Dormant Account Scam of Rs. 14 lakh in SBI

A scam of ₹14.60 lakh has come to light at the State Bank of India (SBI)’s Personal Banking Branch (PBB) located on Mall Road, where a dormant account was fraudulently activated. Now, the bank’s Vigilance Department has started a full-scale investigation into the matter.

Dormant Account Misused to Withdraw Money

According to reports, a dormant account belonging to Shiromani Yadav, a resident of Civil Lines, Kanpur Nagar, was suddenly activated. This account had been inactive since 2022. Shockingly, ₹14.60 lakh was withdrawn from it after it was reactivated on March 25, 2025, through a fake e-KYC process.

Accused Deputy Manager Suspended

A Deputy Manager of the bank, who is also a member of the SBI Officers Association, is accused of being involved in the scam. He has been suspended while investigations are underway. Statements from the bank employees and officers who were working at the branch during that period have also been recorded.

Fake Aadhaar and Address Documents Under Probe

During the initial internal inquiry, it was found that fake Aadhaar cards and false address documents were used in the process of reactivating the account. These documents are currently being verified. Earlier, the case was being looked into by the Regional Manager of Lucknow and the Assistant General Manager of Kanpur. But now, Vigilance authorities have officially taken over the case.

CCTV Footage and Employee Statements Examined

As part of the investigation, CCTV footage from the Mall Road PBB branch and the World Bank branch has been examined. Officials from the Vigilance Department have also questioned the main accused and recorded statements from several employees from both branches.

Anonymous Tip Uncovered the Scam

The scam first came to light after an anonymous letter was sent to the Chief General Manager of SBI on May 1. The letter detailed how ₹14.60 lakh had been fraudulently withdrawn from the dormant account and named the Deputy Manager and other employees involved.

Interestingly, when internal discussions about the fraud began, the money was returned to the account on April 11, and the account was again deactivated on April 15—possibly in an attempt to cover up the fraud.

Investigation Report Expected Soon

Vigilance officers are now preparing their final report based on the documents, CCTV footage, and employee statements. This report is likely to be submitted to senior officials soon.

Source - hellobanker

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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?

A 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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