PS banks are becoming smarter now

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Hit hard by Nirav Modi fraud, Punjab National Bank has embarked on Mission Parivartan, a 10-pronged transformation strategy to strengthen the bank on all counts. The strategy includes profit maximisation, improvement of asset quality and recovery, increasing productivity, new ideas for augmenting retail business, innovative vigilance practices and reducing error and complaints. In a letter written to the employees, PNB MD Sunil Mehta said an independent think tank named “Mission Parivartan Division” will act as the catalyst to ensure the 3C’s — Commitment, Collaboration and Communication bring together all internal stakeholders.”
-Business Standard

A bank consortium led by SBI has written to the CBI  seeking criminal proceedings against Chennai-based jewellery manufacturer Kanishk Gold for defrauding lenders to the tune of Rs 824.15 crore as of end-2017. The 13-member lender consortium had declared the accounts of Kanishk as “NPA” between May and July last year. The accounts were declared as fraudulent between November last year and January this year following a lenders’ meeting on Nov 8, 2017.
-Economic Times

ICICI Bank said it has raised Rs 4,000 crore from bonds to fund growth. “The Committee of EDs of the bank at its meeting held has approved the allotment of 40,000 Basel III compliant unsecured subordinated perpetual Additional Tier 1 bonds in the nature of debentures aggregating Rs 4000 crore on private placement basis,” ICICI Bank said in a regulatory filing to stock exchanges.
-Moneycontrol.com

Bank of India today said it has closed down its operations of representative office in Yangoon (Myanmar) from mid-January. “The Ministry of Planning and Finance, Directorate of Investment and Co Administration, Myanmar has allowed to terminate/close our Yangoon Representative Office (Myanmar) with effect from Jan 19, 2018,” the bank said in a regulatory filing.
-Moneycontrol.com

A special CBI court Ahemadabad has awarded 3 years rigorous imprisonment to 4 persons in a Rs 70 million bank fraud case. Special Judge J K Pandya recently sentenced former bank manager of PNB, Shrikant Khatavkar and then manager of Classic Co-operative Bank Limited, Dinesh Turakhia, to 3-year rigorous imprisonment. He also slapped a fine of Rs 5,000 each on the two.
-Business Standard

Making a case for more concrete steps to strengthen internal control system in PSU banks, S&P Global Ratings today said the banking sector could witness a turn around in fiscal 2019-20.
-Moneycontrol.com

Uday Kotak said private sector lenders will account for half of India’s banking industry in the next 5 years, facilitated by the shift in loan growth towards the private sector. “On a delta basis, the entire growth in loans is happening as private sector banks are growing significantly. In the next five years, 70:30 ratio will move towards 50:50,” said Kotak, executive vice-chairman and MD of Kotak Mahindra Bank.
-Live-in

PSBs should be privatised now when they dominate the market share before their value is eroded by “creeping privatisation”, Infosys Chairman and the architect of Aadhaar Nandan Nilekani said on Tuesday.
-Economic Times

After a gruelling 14-month battle to recover sticky loans and meet prudential capital norms, Ramesh Ramanathan-promoted  Janalakshmi Financial Services is finally looking to overcome the last regulatory hurdles of becoming a bank. The  microfinance  co is awaiting the ‘commencement of business’ certificate from the RBI, which is the last of the several approvals needed before starting a bank, the people cited above said.
-Economic Times

There is no plan to increase the retirement age  of  Central Govt  employees from existing 60 years to 62 years, Minister of State for Personnel Jitendra Singh said today.
-Economic Times

Political faultlines have split a parliamentary committee looking into demonetisation, with more than half of its members belonging to the ruling front and its allies moving a dissenting note terming as “politically motivated” the draft report of the panel headed by  M Veerappa Moily. Sources said as many as 16 members belonging to the ruling party and allies in the Standing Committee on Finance have reservations over the tone and tenor of the draft report. The committee has 31 members, including Chairman Moily.
-Economic Times

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