Page 6 - Banking Finance August 2022

BANK UPDATE

other investors, has been operational vate banks have emerged as a credible In the fortnight ended June 2, 2021,
since 2001, with MIHL and PNB being alternative to PSBs with substantial bank advances stood at Rs 109.28 lakh
the promoters of the company. market share. Also, government own- crore and deposits at Rs 154.51 lakh
ership hinders the ability of the Re- crore, according to the Scheduled
PNB also became a stakeholder in
serve Bank of India (RBI) to regulate Banks' Statement of Position in India as
Canara HSBC Life after the erstwhile
the sector, according to a report by on July 1, 2022, released.
Oriental Bank of Commerce merged
the National Council of Applied Eco-
into it. In the fortnight ended June 17, 2022,
nomic Research (NCAER).
bank credit grew by 8.31 per cent and
In March 2020, OBC and United Bank
Barring SBI, most other PSBs have deposits by 12.05 per cent.
of India were amalgamated into PNB.
lagged behind private banks in all the
As all assets and liabilities of OBC were In FY22, bank credit rose by 8.59 per
major indicators of performance dur-
subsumed into PNB by virtue of such cent and deposits by 8.94 per cent.
ing the last decade. They have seen
amalgamation, PNB became a share-
soured loans and operational costs
holder of Canara HSBC Life to the ex- Frauds on PSBs halved
soar, the report authored by NCAER's
tent of OBC's stake of 23 per cent.
The amount involved in fraud cases
Poonam Gupta and economist Arvind
reported by public sector banks (PSBs)
Panagariya said.
CBI FIR against DHFL, has come down to Rs 3,204 crore in
the last fiscal from Rs 28,884 crore in
Wadhawans for 'Duping' Bad loan ratio likely to fall
2017-18, Parliament was informed.
17 Banks of Rs. 34,615 to 5% by March 2024
As per the RBI data, PSBs reported
The CBI has booked Dewan Housing S&P Global Ratings said non-perform-
5,624 cases of fraud in 2017-18, involv-
Finance Ltd, its former CMD Kapil ing loans of banks are expected to de-
ing Rs 28,884 crore. In 2018-19, a to-
Wadhawan, director Dheeraj cline to 5-5.5 per cent of the total ad-
tal of 9,092 cases were reported
Wadhawan and others for bank fraud vances by March 2024.
amounting to Rs 26,720 crore, while in
of Rs 34,615 crore, making it the big-
As per the latest Financial Stability 2019-20, the number of frauds rose to
gest such case probed by the agency,
Report published by the RBI, the gross 11,074, involving a monetary value of
officials said.
non-performing assets (GNPA) declined Rs 21,170 crore, Minister of State for
Following the registration of case on to a six-year low of 5.9 per cent in Finance Bhagwad Karad said in a writ-
June 20, a team of over 50 officials March 2022. ten reply to the Rajya Sabha.
from the agency carried out coordi-
"We project the banking sector's weak In 2020-21, PSBs reported 4,680 fraud
nated searches on 12 premises in
loans will decline to 5-5.5 per cent of cases of Rs 7,306 crore, which declined
Mumbai belonging to FIR-listed ac-
gross loans by March 31, 2024. Like- to 2,369 cases corresponding to Rs
cused which also include Sudhakar
wise, we forecast the credit costs to 3,204 crore in 2021-22, he added.
Shetty of Amaryllis Realtors and eight
stabilise at 1.5 per cent for fiscal 2023
Karad said an online searchable data-
other builders.
and further normalise to 1.3 percent,
base of frauds reported by banks has
The action came on a complaint from making credit costs comparable to
been set up in the form of the Central
the Union Bank of India (UBI), leader those of other emerging markets and
Fraud Registry.
of 17-member lender consortium India's 15-year average," the rating
It has enabled timely identification,
which had extended credit facilities to agency said in a report.
control and mitigation of fraud risk and
the tune of Rs 42,871 crore between
also to carry out due diligence during
2010 and 2018. Bank credit grows 13.29%,
the credit sanction process, he said.
deposits up 9.77: RBI data
Privatise all govt banks ex-
Bank credit grew by 13.29 per cent to Kotak becomes first bank
cept SBI: NCAER Rs 123.81 lakh crore and deposits by
of integrate with new IT
The Centre should privatise all public 9.77 per cent to Rs 169.61 lakh crore
portal
sector banks (PSBs), except the State in the fortnight ended on July 1, RBI
Bank of India (SBI). This is because pri- data showed. Kotak Mahindra Bank has completed
6 | 2022 | AUGUST | BANKING FINANCE