Page 7 - Banking Finance December 2017

BANK UPDATE

BANKING

NEWS
NEWS
NEWS
NEWS
NEWS

SBI, BoM, Allahabad Bank Aadhaar linking with Bank Accounts before Dec 31

and PSB slash the MCLR Recent amendments in the Prevention of Money laundering
Rules, 2005, advised that all bank accounts have to be seeded
SBI reduced its marginal cost of and authenticated before December 31, 2017. Accounts with-
funds- out Aadhaar authentication will be ceased to be operative till
based lend- Aadhaar Authentication is completed. There are three modes
ing rates of Aadhaar authentication i.e. demographic authentication, bio-
(MCLR) by metric authentication and OTP based authentication.
five basis
points. This Merger and relocation of PNB branches
rate cut comes after 10 months. The As a part of restructuring exercise, to make operations more efficient, Punjab
one-year MCLR will now be 7.95 % National Bank (PNB) has identified 300 branches to ei-
as against 8 %. Kolkata-based ther be merged with better run ones, or be relocated.
Allahabad Bank has also cut its MCLR PNB has identified 300 branches to either be merged
by 15 basis points. with profitable ones or be relocated.
Bank of Maharashtra slashed its mar- A group of senior officials will carry out a detailed study
ginal cost of funds based lending to decide on strategies including study of the surround-
rates by 0.05 % for all the tenors up ing competitive landscape and the availability of the bank's business correspon-
to one year. Likewise, Punjab & Sind dent (BC) network before deciding the fate of the 300 branches.
Bank (PSB) has also lowered its MCLR The country's second largest public sector lender has a customer base of 100
by up to 0.10 %. million. Since March, it has shut down 928 ATMs-it had 9,753 ATMs as of Sep-
tember end, down from 10,681 in March. The bank added nine branches to its
IOB losses increased due network from April to June, but also closed six in the second quarter, taking the
to bad loans provisioning total to 6,940 till September end.
Indian Overseas Bank (IOB) recently The net profit of period ended September 2017 increased by 2% to Rs 560.6
reported wid- crores from a year ago, as provisions for bad loans increased. The profit came
ening of its on a 4% increase in interest and non-interest income to Rs14, 205 crores.
net loss by Recap bonds may be infused in the PSU banks
nearly 60 % at The finance ministry may infuse about Rs 70,000 crores through recapitalization
Rs. 1,222.50 bonds in the NPA-hit public sector banks in the near future. Finance Minister
crores for second quarter ended Sep- Arun Jaitley had announced an unprecedented Rs 2.11 lakh crores two-year road
tember. IOB said the loss is due to
map for strengthening public sector banks. The plan included re- capitalization
provisioning against the bad loans.
bonds of Rs 1.35 lakh crores.
BANKING FINANCE | DECEMBER | 2017 | 7

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