- INDIA POST INVITES PROPOSAL FOR CONSULTANCY FOR SETTING UP INSURANCE ARM : India post has invited bids to appoint consultant for setting up separate insurance service arm. The consultant thus appointed will prepare project report on setting up of Postal Life Insurance (PLI), Strategic Business Unit (SBU), Impact assessment and overseeing the implementation thereof. The pre-bid in this regard was held on September 18Th.
- SBI TO INSTALL SOLAR PANELS OVER 10,000 ATMs IN 2 YEARS: State Bank of India is planning to install solar panels over around 10,000 ATMS across country in the next two years. Currently nearly 1,200 of the Bank’s ATMs are running on solar power. The bank has already installed rooftop solar panels on 150 of its buildings across country and is in the process of identifying more such locations. The bank is also planning to replace all its bank vehicles with electric vehicles by 2030. The route map is to turn totally carbon neutral by 2030.
- BANK OF BARODA, VIJAYA BANK AND DENA BANK TO BE MERGED: The government has proposed the merger of Bank of Baroda, Dena Bank and Vijaya Bank and once the merger is through then this will be the country’s third largest bank. The combined entity will have a strong presence across nation with more than 34% of low-cost deposits (Savings + Current), a capital buffer of around 12%, and a total business of around 15 lakh crore. Bank of Baroda is the biggest of the three with a total business chunk of Rs.10.29 lakh crore, followed by Vijaya Bank at Rs. 2.70 lakh crore and Dena Bank at Rs. 1.72 lakh crore. Shortly all the three bank boards will meet and after adequate consultation, will take a decision.
- GOVERNMENT DOUBLES NPA RECOVERY FOR PSBs FOR THIS FISCAL: The government expects the state-run banks to recover Rs 1.5 lakh crore of bad debts during the current financial year. This is double the amount that banks had managed to recover last year. Total NPA recovery during 2017-18 was Rs 74,000 crore. NPAs have been a major concern for public sector banks as almost all banks have been under losses because of this.
- E-COMMERCE FIRMS TO COLLECT 1% TAX AT SOURCE FROM OCTOBER 1st : The Finance Ministry has notified that from 1St October 2018, all E-Commerce firms shall collect an amount of 1% as Tax Collected at Source (TCS) under the Goods and Services Tax (GST) on the supplies made by them. Out of this, half will go to the state where the supply takes place and half to the Centre.
- SMALLER PSBs ASKED TO CONSOLIDATE OPERATIONS, AVOID COMPETING WITH LARGER BANKS: The government has asked smaller public sector banks to consolidate their banking operations in the same geographic area, close overlapping branches and avoid competing with larger banks and instead has asked them to focus on niche areas. The move comes close on the heels of government’s proposal to merge Bank of Baroda, Vijaya Bank and Dena Bank to create country’s third largest bank. Smaller banks should not be competing for large corporate loans or for sectors where they don’t have strength or capacity to lend. The government is planning National banks and Regional banks and existing lenders have to make plans for reorganising their organisational resources, human resource and Information technology systems. Finally the government is looking at trimming the number of banks to around 10 from the existing 21.
- BANKS UNDER PCA HAVE BEEN TOLD TO PRESENT THEIR TURN AROUND PLANS: Banks that are under Reserve Bank of India’s Prompt Corrective Actions (PCA) framework have been asked to present their turn-around plans and look at leveraging their competitive advantage for regional market business. Finance Minister will hold a quarterly review of the performance of these banks which are under PCA.