Page 8 - Banking Finance JANUARY 2017

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BANK UPDATE

SBI cashier dies of heart SBI slashes deposit rate by 1.75%
attack amid customer State Bank of India has slashed bulk deposit rates by as much as 1.75% following
the surge in deposits resulting from withdrawal of high
rush denomination currency. The new rates apply to deposits
A 45-year-old cashier at the Neelbad ranging from Rs 1 crore to Rs 10 crore.
branch of
The highest rate in this segment was offered to senior citi-
State Bank zens on tenure ranging from one-three years at 6.5%,
of India in
which has been reduced to 4.5% for deposits up to 455 days and 4.75% on de-
Bhopal re- posits up to two years. The best rate available to non-senior citizens on bulk
p o r t e d l y deposits is 4.25% as against 6% earlier.
died of heart
attack at Ratibad locality. He was
taken to a nearby hospital where he IPPB can bring individuals into banking network
was declared brought dead. The India Post Payments Bank (IPPB) has tremendous possibilities as it can bring
cashier was working as banks stayed millions of individuals and small businesses into the
open on Sunday, 11 November to formal banking channel by offering savings ac-
cope with the rush of customers seek- counts of up to Rs. 100,000 and current accounts
ing to exchange demonetized with a special focus on micro, small and medium
banknotes of Rs 500 and Rs 1000 enterprises, small merchants, village panchayats,
denominations. etc.
It can also be the vehicle for the direct benefits transfer of social security pay-
Banks should install 10 ments of various ministries and pay utility bills.
lakh card swipe ma-
Gunmen loots J & K bank of Rs 13.38 lakh
chines in 3 months: Govt
The Jammu and Kashmir Bank at Arihal in South Kashmir's Pulwama was looted
The government is pushing banks to
install 10 lakh of Rs 13.38 lakh by unidentified gunmen. The attack-
credit card ers reportedly fired shots while leaving the branch.
swipe ma- According to sources, the gunmen looted around Rs
chines in the 11.15 lakh in new notes while Rs 2.23 lakh in old notes.
next three months. SBI alone is ex- Four gunmen beat up the employees, broke some com-
pected to install 6 lakh. puters, took away mobile phones and also fired in air.
To incentivise banks and the manu- They looted all the cash available at the bank which was around Rs 13.38 lakh as
facturers of point-of-sales (PoS) ter- reported by the authorities,'' said Rayees Ahmad Bhat, Superintendent of Po-
minals, the government has waived lice, Pulwama.
the 12.5% excise duty and 4% special
excise duty on these machines. There NPAs in PSBs increases to Rs 80,000 in Sept 2016
are 14.6 lakh PoS terminals in India. Public sector banks have seen nearly Rs 80,000 crore increase in gross non-per-
But the number of outlets that accept forming assets (NPAs) in the three months ended Sep-
card payments is estimated at 10 tember 2016. As on September 30, gross NPAs of public
lakh, since many outlets have multiple sector banks rose to Rs 6,30,323 crore as against Rs
devices and some are inactive. To 5,50,346 crore by June end, an increase of Rs 79,977
achieve this network of a million shops crore on quarter-on-quarter basis.
equipped with cashless transactions, "The government has taken sector-specific measures (in-
banks have taken over five years and frastructure, power, road textiles, steel etc) where in-
the same target is now sought to be cidence of NPA is high," minister of state for finance Santosh Gangwar said in a
achieved in three months. written reply to the Rajya Sabha.

8 | 2017 | JANUARY | BANKING FINANCE

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