Banking & Financial Services

On August 30, Finance Minister Nirmala Sitharaman announced four mergers of banks, a move she said would result in 12 public sector banks in the system instead of 27.

Under the consolidation, the three banks will be merged into one entity to make the second-largest PSB with a business of Rs 17.95 lakh crore and 11,437 branches.

RLLR or repo-linked lending rate means that any changes in the key interest rate by the central bank are passed on directly to the customers.

PSBs are under pressure to meet the capital adequacy requirements under Basel III and looking at the government support for capital, SBI Deputy MD said.

Finance Minister Nirmala Sitharaman will meet the heads of PSU banks on Thursday to discuss merger-related issues and review their preparedness to execute the process

On September 12, the Reserve Bank of India reduced risk weightage on consumer loans such as personal loans to 100 per cent from 125 per cent.

Finance Minister Nirmala Sitharaman had on August 30 announced the consolidation of 10 state-run banks into four large-scale lenders.

The aggregate saving deposits of public and private sector banks (PSBs) stood at Rs 39.72 lakh crore as on March 31, 2019, according to Reserve Bank of India (RBI) data published in Handbook of Statistics on Indian Economy 2018-19. On the other hand, foreign banks had a share of Rs 58,630 crore in terms of savings deposits in the same fiscal, the data showed. The total savings deposits with commercial banks, including foreign ones, in 2018-19 stood at Rs 40.31 lakh crore, up from Rs 36.55 lakh crore in 2017-18.

Four unions of public sector bank officers have threatened to go on a strike opposing the consolidation of 10 state-run lenders into four. The unions have jointly given a strike call for forty-eight hours - from the midnight of September 25, 2019 to the midnight of September 27, 2019, the All India Bank Officer's Confederation (AIBOC) said in a statement. On August 30, Finance Minister Nirmala Sitharaman announced four mergers of banks, a move she said would result in 12 public sector banks in the system instead of 27.

The lenders said that there will no retrenchment of staff in the merged entity.

SBI branches: State Bank of India (SBI) said the new branch is located in Diskit, Nubra Valley (District Leh). SBI said the branch is about 100 kilometres from Leh. SBI is the country's the largest commercial bank in terms of assets deposits and branches.

Bank strike 2019: Bank strike to lead to four-day bank holiday: The two-day strike will begin on the midnight of September 25. The unions have also mentioned an indefinite stir from the second week of November - to protest against the merger plan involving 10 nationalised banks.

Outstanding loans rose Rs 9 lakh crore to Rs 96.81 lakh crore in the two weeks ended August. 30.

A union leader also said that the nationalised banks will further observe indefinite strike from the second week of November to press for their demands.

Moody's does not expect LAP lending by NBFCs and HFCs to pick-up significantly in the next few months.