Page 7 - Banking Finance March 2025

pension liabilities in Q3FY24 and a drop ject have stated that the demand is
in operating expenses. Employee pro- without legal justification and will be Attention Subscribers
visions declined 61.5% to Rs. 3,672 set aside by a court of appropriate ju- Please renew your Subscription of The
crore from Rs. 9,554 crore in the same risdiction. Insurance Times Journal to receive
quarter last year. " we believe that the demand order copy of the journal uninterruptedly.
Last year, the bank had to make a one- shall have no material impact on the You can now pay by GPAY, Phonepe,
time provision toward pensions after financials, operations, or other activi- Paytm, Amazon, ICICI Pay, BHIM UPI
the central board decided to have a ties of the bank," it said.
uniform 50% rate for pensions for all The bank said the notice pertains to
retired employees, as against an ear- GST being levied on interest receiv-
lier formula of 40% and 50%. The able under the transfer pricing mecha-
change resulted in an actuarial valua- nism (TPM) between the corporate
tion of the liabilities, showing that the headquarters and branches from a
bank would have to set aside more for common pool of funds being treated as
retired employees. financial services for the period July
Net interest income grew 4.1% to Rs. 2017 to March 2020.
41,446 crore from Rs. 39,816 crore.
However, net interest margin fell 21 PSBs told to create
bps YoY to 3.01% for the whole bank standardised training
and 19 bps YoY to 3.15% for domestic
operations due to the rising cost of norms for new recruits

deposits. The government has asked state-run
"While it may not be possible to sus- lenders to bring out a standardised in-
duction programme for fresh recruits
tain an 84% growth in net profit, we
want to maintain in terms of continu- in all cadres. Banks will also look at
cross-bank participation, the composi-
ity and consistency our goals of 1%
tion of training faculties, and special
return on assets and 15% return on
equity," said CS Setty chairman State training modules for leadership posi-
tions, said two bank executives aware
Bank of India.
of the developments. Sashi Publications Easy Payment
J&K Bank gets GST notice As per the latest available data, there Modes :-
are 758,608 employees in public sec- i) UPI ID: SASHIBOOKS@KOTAK
of over Rs. 16K crore tor banks (PSBs) ii) GPAY: 9830171022@okbizaxis
Jammu and Kashmir Bank (J&K Bank) "The plan is being finalised, including iii) PAYTM: 9830171022@paytm
announced that it has received a Goods identifying the existing gaps in training iv) NEFT: Current A/C
and Services Tax (GST) notice amount- and adapting best practices across 402120110000327 of 'SASHI
ing to over Rs 16,000 crore. Of this, Rs banks," said bank executives, adding PUBLICATIONS PRIVATE
8,130.66 crore pertains to the GST that the government aims to further LIMITED, Bank of India, VVK
demand, with an equal amount im- enhance employee development and Road Branch., Kolkata, India,
posed as a penalty, issued by the joint governance.
commissioner of the central GST IFSC Code : BKID0004021
Commissionerate in Jammu. "These measures are part of the v) Credit Card:
larger initiatives to identify ways for www.sashipublications.com
The bank has stated that it has taken talent management, including reten-
appropriate legal action in the matter, tion, attraction, and nurturing an em- For any query please call
as it believes that it has a strong case ployee base," said the second bank ex- 9073791022/9883398055
on merit. Expert opinions on the sub- ecutive. www.sashipublications.com

BANKING FINANCE | MARCH | 2025 | 7