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It is not good to rely on so many public sector banks, says ex-RBI deputy Viral Acharya at 'The Future of Banking' webinar


According to him to make these public sector banks more accountable with improved digital, risk management and other processes, the best way would be to privatise some banks.
He added, “It would be good to not rely on so many public sector banks and hand over some into private hands and let them improve their digital, risk management and other processes.”
Explaining his view on private banks, Acharya said, “It is not that private banks are perfect, they make their own mistakes too. But we have better ability to change management and alter the governance structure when it doesn t work in a private bank.” ....

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Employees' union voice concerns against privatising BoM - The Hindu BusinessLine


Employees’ union voice concerns against privatising BoM
February 16, 2021
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Bank of Maharashtra’s (BoM) employees’ union wants the government to maintain the public sector character of the bank in the backdrop of the problems that two private sector banks – YES Bank and Lakshmi Vilas Bank – and a host of urban co-operative banks (UCBs) faced in the recent past.
“Customers are scared of private sector banks, more particularly after the YES Bank episode. In Maharashtra, Punjab and Maharashtra Co-operative Bank customers have suffered a lot.
“The Reserve Bank of India (RBI) has cancelled the licence of Subhadra Local Area Bank (Kolhapur) from private sector and Shivam Sahakari Bank (Ichalkaranji, Kolhapur) and The Karad Janata Sahakari Bank (Karad) from UCB sector,” said Devidas Tuljapurkar, General Secretary, All India Bank of Maharashtra Employees Federation (AIBoMEF), in a statement. ....

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PNB records Q3 PAT at Rs 506 cr


The public sector bank posted a net profit of Rs 506.03 crore in Q3 FY21 compared with net loss of Rs 492.28 crore in Q3 FY20.
The bank s total income grew by 45.9% to Rs 23,298.53 crore in Q3 FY21 as against Rs 15,967.49 crore in Q3 FY20. The result was announced after market hours on Friday, 5 February 2021.
Net Interest Income (NII) for Q3 FY21 grew by 28% to Rs 8,313 crore in Q3 FY21 over Q3 FY20. Global Net interest margin improved to 3.09% in Q3 FY21 from 2.49% in Q3 FY20.
The bank s operating profit jumped by 69.8% to Rs 6,390.81 crore in Q3FY21 from Rs 3,762.90 crore in Q3 FY20. Punjab National Bank posted a profit before tax of Rs 958.21 crore in Q3 FY21 as against a pre tax loss of Rs 383.14 crore in Q3 FY20. Provision for taxes were sharply higher at Rs 452.18 crore in Q3 FY21 compared with Rs 109.14 crore in Q3 FY20. ....

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