Page 6 - Banking Finance December 2023

BANK UPDATE

a result of an Immediate Payment Ser- check that insurance professional As bad loans decrease, CSB
vice (IMPS) technical issue. Avinash Nunes had presented to the Bank's profit increases by
"The bank has reported the matter to bank. The payee had endorsed the
the law enforcement agencies for nec- check in Nunes' favor and the other 10% to Rs. 133 crore.
bank had verified his signature.
essary action and has initiated the req- Kerala-based CSB Bank, reported a
uisite actions to recover the balance Crossed cheques are non-transferable, 10.4% increase in net profit to Rs
amount of Rs 171 crore," the bank according to BOI officials, despite the 133.17 crore in the second quarter of
stated in an exchange filing. Act permitting such cheques to be en- the 2023-24 fiscal year, up from Rs
In another filing, UCO Bank stated that dorsed in favor of a third party. 120.55 crore in the same period the
it observed that, between November After Nunes complained to the RBI, previous year. The first quarter of the
10 and November 13, certain transac- BOI acknowledged that the check had 2023-24 fiscal year saw CSB Bank re-
tions initiated by holders of other been returned incorrectly. The bank port a Rs 132 crore profit.
banks resulted in credit to the account gave Nunes Rs 1,000 in compensation The bank's total income increased by
holders of UCO Bank without any ac- as per the investigating officer's recom- 39% to Rs 835 crore during the re-
tual money being received from these mendation. viewed quarter from Rs 600 crore in
banks due to a technical issue in IMPS. the second quarter of FY23. From the
Through the IMPS system, money can PNB profits quadruple, Rs 805 crore reported in the first quar-
be moved instantly between accounts. ter of FY23 to the second quarter of
with "NPAs declining for FY24, total income increased by 3%.

In this digital age, banks five quarters" Compared to Rs 291 crore in the sec-
ignore a 142-year-old rule In comparison to the same period last ond quarter of FY23, gross non-per-
forming assets (NPA) decreased by 2%
regarding cheques year, Punjab National Bank (PNB) re- to Rs 284 crore in the current fiscal
ported an almost four-fold increase in
Businesses and banks frequently over- year's second quarter. The first quar-
net profit to Rs 1,756 crore, the high-
look the fact that the law is not chang- est in 14 quarters. The bank saw a ter of FY24 saw a gross non-perform-
ing at the same rate as their efficient ing asset (NPA) of Rs 270 crore.
decline in provisions and contingencies,
process adoption.
as well as an improvement in asset
Even though banks are required by law quality and higher interest income. Profit at the Central Bank
to credit endorsed cheques to third Since we have been lowering the of India soars to Rs. 605
parties, the current Cheque Truncation
System (CTS), which took the place of amount of new slippage in non-per- crore, up 90%.
physical check clearing, is not fully ca- forming assets for the past five quar- Due to strong core income growth and
ters, it will be sustainable at less than
pable of complying with all require- a decline in bad loans, the Central
1% of advances.
ments set forth in the Negotiable In- Bank of India reported a 90% increase
struments Act of 1881. In the upcoming quarters, this number in net profit to Rs 605 crore for the
The Act allows ownership of negotiable won't rise. Both the need for provi- September quarter. In the same period
instruments, such as cheques, to be sions and my provision coverage ratio last year, the bank reported a net profit
transferred to a different individual have decreased. Additionally, we have of Rs 318 crore.
through the payee's endorsement on adequately budgeted for pay revisions, According to a regulatory filing from
the cheques 's reverse. All types of in- PNB MD & CEO Atul Kumar Goel said. the Central Bank of India, total income
struments, such as promissory notes, Goel stated that although there have increased to Rs 8,412 crore during the
bills of exchange, checks, and hundis, been some worries regarding the as- quarter from Rs 7,065 crore the previ-
are subject to the rule. Giving the ben- set quality, particularly with regard to ous year.
eficiary access to liquidity is the goal. unsecured loans, this segment's share Compared to the same period last
The clearing house of Bank of India of the total loan portfolio is extremely year, interest income increased to Rs
returned an endorsed Saraswat Bank small at Rs 25,700 crore. 7,351 crore during the September

6 | 2023 | DECEMBER | BANKING FINANCE