Page 6 - Banking Finance July 2025

BANK UPDATE

Nagaraju, in a letter to state chief sec- tor & CEO, Srikrishnan Harihara Sarma, FinMin Urges PSBs to
retaries, emphasized the critical role and Executive Director, Sekhar Rao,
banking services play in delivering wel- marking a significant leadership tran- Monetise Subsidiary In-
fare benefits, supporting small busi- sition at the private sector lender. The vestments via Stock Mar-
nesses, and enabling daily financial bank informed the stock exchanges ket Listings
transactions. He cited disturbing social that both resignations have been ac-
The Finance Ministry has advised pub-
media and news reports of anti-social cepted by the Board of Directors, with
lic sector banks (PSBs) to explore
elements engaging in verbal and physi- effect from June 29, 2024.
monetising their investments in subsid-
cal abuse, disrupting banking opera-
Srikrishnan, who joined Karnataka iaries by listing them on stock ex-
tions, and demoralizing staff. The min- Bank in 2023, cited personal reasons
istry has asked district magistrates and for stepping down before the comple- changes. The move is aimed at unlock-
police authorities to provide security at tion of his tenure. During his brief lead- ing value, improving transparency, and
sensitive banking locations, particularly ership, he focused on digital transfor- enhancing capital efficiency across the
during peak hours, to prevent such in- mation, improving asset quality, and public banking sector.
cidents. expanding the bank’s retail footprint. In a recent communication to top PSBs,
the ministry suggested identifying prof-
Ensuring a safe environment is essen-
Executive Director Sekhar Rao, who itable and scalable subsidiaries—espe-
tial to maintain public trust and the also played a crucial role in driving cially those in insurance, mutual funds,
uninterrupted functioning of the finan- operational efficiency and regulatory and fintech—for potential initial pub-
cial ecosystem, especially in rural and compliance, resigned around the same lic offerings (IPOs) or strategic
semi-urban areas that rely heavily on time. disinvestments. This aligns with the
direct benefit transfers and accessible government’s broader disinvestment
banking services. The bank has initiated the process of
identifying suitable successors, and in- agenda and capital market develop-
Karnataka Bank Accepts terim arrangements have been put in ment strategy.
place to ensure business continuity. Listing subsidiaries is expected to offer
Resignation of MD & CEO dual benefits: providing growth capital
This dual leadership exit comes at a
and Executive Director critical juncture as the bank continues for the units while allowing banks to
Karnataka Bank has officially accepted its journey of strategic modernization realise gains on their long-term invest-
the resignations of its Managing Direc- and digital banking expansion. ments. The government also believes
such listings can improve governance
standards and attract greater investor
Indian Funds in Swiss Banks Surge Over Threefold to interest in PSB-linked entities.

Rs. 37,600 Cr in 2024 Banks have been asked to submit de-
Indian deposits in Swiss banks soared more than three times in 2024 to CHF tailed plans and timelines for the pro-
3.5 billion (around Rs. 37,600 crore), as per data released by the Swiss Na- posed monetisation steps, with empha-
tional Bank (SNB). The sharp spike is largely attributed to an increase in funds sis on readiness and market condi-
held via local branches and other financial entities. tions.
Customer deposit accounts of Indian clients, however, rose modestly by 11%
to CHF 346 million (Rs. 3,675 crore), accounting for just one-tenth of the Join
total holdings. This growth follows a steep 70% drop in 2023 when Indian
deposits hit a four-year low. While 2024 figures are the highest since the Online Certificate
2021 peak of CHF 3.83 billion, they remain below the record CHF 6.5 billion Course on
seen in 2006.
The SNB clarified that the data excludes black money and funds routed Motor Insurance
through third-country entities. Separately, the Bank for International Settle-
ments (BIS) reported a 6% rise in Indian deposits, pegging them at $74.8 For details please visit
million (Rs. 650 crore). www.smartonlinecourse.co.in

6 | 2025 | JULY | BANKING FINANCE