Page 8 - Banking Finance July 2023

BANK UPDATE

the advances category in the previous specialised multidisciplinary teams, should ensure that the management is
fiscal. The total amount of fraud in the these new centres of excellence in transparent about the banks' financial
digital payment category stood at Rs oncology treatment will provide ad- performance / statements and risk
276 crore in FY23. vanced and evidence-based therapies management practices so that trust
to nearly 25,000 new patients a year, with stakeholders is built and investors
Ashwani Kumar new MD doubling the present capacity and pro- are able to assess the various risks as-
viding a significant boost to the sociated with banks.
of UCO Bank
country's cancer treatment infrastruc-
Ashwani Kumar has been appointed as ture," the bank said.
Jana SFB raises Rs 1,200
the new MD and CEO of city-based
public sector UCO Bank with effect crore
Bank boards must hold
from June one. Bengaluru-based Jana Small Finance
managements account- Bank's (SFB) holding companies have
Prior to this, he was the executive di-
rector of the Indian Bank and is a able raised around 1,200 crore of fresh debt
from shareholders TPG Capital and
qualified chartered accountant, a The boards of banks should hold the
Singapore's sovereign wealth fund GIC.
statement by the bank said. management accountable for its ac-
tions, and should replace it if it does not The funds raised were used by the
Kumar, an experienced banker, suc-
bank's holdcos to redeem
meet expectations, M Rajeshwar Rao,
ceeds S Prasad as the MD and CEO of
nonconvertible debentures (NCDs),
deputy governor of the Reserve Bank
UCO Bank.
along with accrued interest, that ma-
of India (RBI), said in an interaction
He had earlier worked in Bank of tured at the end of May. These NCDs
with board members of banks.
Baroda, Corporation Bank, Oriental were largely held by TPG and GIC them-
"Boards should appraise the perfor-
Bank of Commerce, Punjab National selves, the people said.
mance of management objectively and
Bank and Indian Bank.
The NCDs were issued in 2017 and
ensure that they are held accountable
2018. The proceeds were then infused
for their actions. If the management
ICICI Bank commits Rs. into the bank, which was struggling
is not meeting expectations, boards
1,200 crore to Tata hospi- with a massive pile of bad loans follow-
should take suitable action, including
ing the government's demonetisation
tal replacing the management, to im-
drive in late 2016.
prove the bank's governance and risk
ICICI Bank announced a commitment
management," Rao said in his speech
to contribute Rs 1,200 crore towards
at the conference of the directors of Bank deposits rise by Rs.
Tata Memorial Centre (TMC), a pre-
banks. The RBI had organised the con-
mier institution that runs cancer treat- 3.26 trillion in fortnight
ference for public sector banks on May
ment and research centres across the Bank deposits increased by 3.26 trillion
22 in New Delhi and private sector
country. rupees to 187.03 trillion rupees as on
banks on May 29 in Mumbai. Jun 2, according to data released by
ICICI Bank will donate the money from
its CSR funds to set up three new Rao said the boards of banks should set the Reserve Bank of India. This growth
buildings over a cumulative area of 7.5 clear expectations for the manage- is mainly after the RBI, last month,
lakh square feet. It will equip them ment in terms of risk management and announced the withdrawal of 2,000-
with state-of-the-art machines at corporate governance. He added that rupee denomination banknotes from
TMC's centres at Navi Mumbai in the management should be required circulation by Sep 30.
Maharashtra, Mullanpur in Punjab and to regularly report risk management. Growth in bank deposits rose by 11.8%
Visakhapatnam in Andhra Pradesh. "This reporting should include informa- on year as on Jun 2, compared with
The bank's CSR arm will implement the tion on the bank's risk appetite, risk 10.42% on year in the previous fort-
initiative, which is likely to be com- exposures, and risk mitigation strate- night.
pleted by 2027. gies," he said.
The total value of 2,000-rupee
"With modern equipment and The deputy governor said boards banknotes in circulation as of Mar 31
8 | 2023 | JULY | BANKING FINANCE