Five PSU banks post loss Rs 2,564 cr in Q1
PTI Saddled with rising bad loans, five public sector banks, including Bank of India, Dena Bank, and Central Bank of India, on Friday posted a combined loss of Rs 2,564 crore for the first quarter ended June. Meanwhile, the country's largest lender SBI witnessed a 78 per cent drop in consolidated profit to Rs 1,046 crore against Rs 4,714 crore profit in the same quarter a year ago. Oriental Bank of Commerce (OBC) too reported 61 per cent decline in net profit at Rs 100.69 crore as against Rs 257.84 crore in the corresponding April-June quarter of 2015-16. Leading the pack, Bank of India reported a loss of Rs 741.3 crore as provisions for bad loans nearly doubled. Provisions and contingencies ...
CSR spend of SBI capped at 1% of profit: Bhattacharya
Sharath Chowdary Though the Companies Act 2013 mandates all Indian business entities to spend 2% of their profit on Corporate Social Responsibility (CSR) activities, the Reserve Bank has asked the State Bank of India (SBI) to spend only 1% of its profit on CSR until the country’s banking sector is improved, SBI Chairperson Arundhati Bhattacharya said. She spoke to media after donating Rs.1.15 crore worth ophthalmic equipment to LV Prasad Eye Institute (LVPEI) in Hyderabad on Thursday. SBI has been spending 1% of its profits on CSR since 1973. Committed to the economic and social wellbeing of the people, SBI has so far spent Rs.144 crore under CSR during this fiscal, she said. “As a statutory corporation, SBI does not need to adhere to ...
RBI achieves neutral banking system
The Dollar Business Bureau The Reserve Bank of India effectively achieved the ‘neutral’ banking system from cash-crunch zone faced 3-4 months back. The neutral system will help the customers to gain quick benefits from RBI’s rate cuts. On the account of Rs 80,000 crore Open Market Operation, purchases in last three months and decline in cash circulation in June, the central bank achieved the desirable neutral liquidity in 1st quarter, said India Ratings Research. OMO mechanism helps the RBI to infuse or draw out the cash from the banking system. The cash crunch in Feb-March period was as high as Rs 1.4 lakh crore. According to RBI reports, by June cash surplus was seen in range of of Rs 19,700- 31,700 crore The report stated ...
In India, deposit rate adjusts more quickly to changes in the policy rate: IMF
The Dollar Business Bureau International Monetary Fund (IMF), in a recent release, pointed out existence of asymmetries in Indian monetary policy. There is a need for empirical evidence on the effects of monetary policy in India, says Sonali Das, IMF Economist. In her research paper titled 'Monetary Policy in India: Transmission to Bank Interest Rates', the IMF official noted that there is a significant pass-through of policy changes to bank interest rates in India. The paper shed light on ‘extent of pass-through from monetary policy to interest rates of Indian banks, effects of monetary tightening and loosening on bank interest rates, changes in monetary policy operating framework, among others,’ as key factors that impact monetary policy. It explained pass-through mechanism from monetary ...
