Page 6 - Banking Finance March 2025

BANK UPDATE

per cent increase in global business "We have put the orders on our "The stress in unsecured loans is vis-
(deposits plus advances from domestic website for wider circulation and ible," said Hari Hara Mishra, CEO, As-
and overseas operations) in the third awareness recently," he said. sociation of ARCs in India. "This un-
quarter to Rs. 25,64,068 crore as at Organ removal from a donor is a ma- likely-to-pay (UTP) segment is likely to
December-end 2024. grow. From a systemic perspective, if
jor surgery, which requires time for
The public sector bank's domestic de- recovery, including both hospitalisation personal insolvency including provisions
posits increased about 9 per cent y-o- and post-hospitalisation periods. The for fresh start are operationalised un-
y to Rs. 11,65,874 crore as at Decem- DoPT order states the govt has decided der IBC, it will help millions of stressed
ber-end 2024. Domestic advances rose to grant a maximum of 42 days special borrowers and the broader financial
about 12 per cent y-o-y to Rs. 9,63,438 casual leave to central govt employees system. However, activation of it
crore, per the Bank's provisional busi- who decide to donate their organs as would require substantial infrastruc-
ness numbers. a "special welfare measure". ture." UTP is a terminology used glo-
bally where the borrower's ability to
Within domestic advances, retail ad- The 42-day leave rule will be appli- not be able to pay in full is anticipated.
vances increased about 19 per cent y- cable irrespective of type of surgery for
o-y to Rs. 2,43,303 crore as at Decem- removal of donor's organ, it adds. "Spe- ARCs have also been nudged into hir-
ber-end 2024. cial casual leave shall normally be ing these agents after the banking
The Bank's global deposits (domestic taken in one stretch starting from the regulator had expressed apprehen-
plus overseas deposits) were up about day of admission in the hospital, how- sions over the use of bank infrastruc-
12 per cent y-o-y to Rs. 13,92,462 ever, in case of requirement it can be ture for loan recovery even after the
sale of such assets.
crore. Global advances increased available starting maximum one week
about 12 per cent y-o-y to Rs. prior to surgery on the recommenda- Presently, ARCs offer a fee to banks to
11,71,606 crore. tion of a govt registered medical prac- recover retail bad loans and they lack
titioner or doctor," the DoPT order infrastructure in every part of the
Central staff who donate says. country.

organs to get 42-day leave ARCs hire specialised loan According to data compiled by an As-
sociation of ARCs, retail bad loans
Central government employees who comprised 14% of the total security
donate their organs are entitled to 42- collection agents receipts valued at 20,599 crore at the
day leave, National Organ and Tissue Asset reconstruction companies (ARCs) end of March 2024. Security receipts
Transplant Organisation (NOTTO) has are hiring specialised collection agen- are instruments that ARCs issue to
said. cies to recover retail loans as the un- banks and financial institutions when
According to NOTTO chief Dr Anil secured segment shows signs of stress, they acquire bad loans. Data with the
Kumar, department of personnel and prompting more lenders to knock such ARC association for the April-June of
training (DoPT) has issued orders al- doubtful exposures off their balance the current fiscal year shows that se-
ready. sheets. curity receipts issued against unse-
cured loans rose by 5% versus a 1%
growth in total SRs issued during this
PSBs to finance Rs. 10 trillion for green energy period.
projects by 2030

Public sector banks (PSB) are likely to finance about Rs. 10 trillion to renew- SBI net profit rises 84.3%
able energy projects in the country by 2030 to help India achieve its energy to Rs. 16,891 crore
transition goals.
SBI reported a sharp 84.3% rise in net
Speaking at the India Energy Transition Summit (IETS) organized by FICCI, profit for Q3FY25, reaching Rs. 16,891
M. Nagaraju, secretary to the department of financial services, also high-
crore from Rs. 9,164 crore in Q3FY24.
lighted issues such as delayed payments which impact the growth of the
green energy space. The jump was due to the absence of a
one-time Rs. 7,100 crore provision for

6 | 2025 | MARCH | BANKING FINANCE