Page 5 - Banking Finance August 2022

BANK UPDATE

Banking

Bajaj Hindusthan Sugar come down to Rs. 28,000 crore from Union Bank's former chief
Rs. 65,900 crore in FY'21 for PSBs. For
declared NPA by banks to head NaBFID
private sector banks, the reduction is
Lending banks have declared Bajaj from Rs. 39,900 crore to Rs. 13,000 The Financial Services Institutions Bu-
Hindusthan Sugar, one of India's larg- crore in FY'22. reau has recommended Rajkiran Rai G
est sugar manufacturers, a non-per- for the position of managing director
forming asset (NPA) after it failed to HDFC and HDFC Bank in the newly formed National Bank for
make payments related to its debt, Financing Infrastructure and Develop-
merger proposal gets
whose gross value stood at Rs. 4,814 ment (NaBFID).
crore as of March this year. bourses' nod
Rai is the former chairman of Union
The proposal of merger of HDFC with Bank of India. He had overseen the
Banking frauds of over Rs. its banking subsidiary HDFC Bank, the amalgamation of Corporation Bank
100 crore see significant biggest transaction in India's corporate and Andhra Bank with Union Bank.
history, has got approval from stock
decline in FY22
exchanges. Both HDFC and HDFC Bank
PNB to rope in actuarial
Frauds in the banking sector involving have got no-objection from both stock
sums of over Rs. 100 crore have de- exchanges. firm
clined significantly, with banks report- Punjab National Bank will select an
HDFC Bank has received observation
ing cases worth Rs. 41,000 crore in actuarial firm for calculating the em-
letter with 'no adverse observations'
2021-22 compared to Rs. 1.05 lakh bedded value of insurance joint ven-
from BSE Limited and observation let-
crore in the previous year. ture Canara HSBC Life, in which the
ter with 'no objection' from the Na-
According to official data, the number tional Stock Exchange of India Limited, state-owned bank has to divest its
of fraud cases in private as well as stake as per regulatory requirement.
both dated July 2, 2022, HDFC Bank said
public sector banks dropped to 118 in
in a filing. At present, PNB has stakes in two in-
FY22 from 265 in 2020-21. surance firms -- PNB MetLife India In-
"The scheme remains subject to vari-
In the case of public sector banks surance Company Limited (PNB
ous statutory and regulatory approvals
(PSBs), the total number of fraud cases MetLife) and Canara HSBC OBC Life
inter alia including approvals from the
of over Rs. 100 crore declined to 80 Insurance Company Ltd
Reserve Bank of India, Competition
from 167 in FY'21, while for private
Commission of India, the National Com- PNB MetLife, a joint venture between
sector lenders such cases reduced to
pany Law Tribunal and the respective MetLife International Holdings LLC
38 in FY'22 from 98 earlier, as per the
shareholders and creditors of the com- (MIHL), Punjab National Bank (PNB),
data.
panies involved in the scheme, as may M Pallonji and Company Pvt Ltd,
In terms of cumulative amount, it has be required," it said. Jammu & Kashmir Bank (JKB), and
BANKING FINANCE | AUGUST | 2022 | 5