Page 7 - BANKING FINANCE OCTOBER 2021

BANK UPDATE

Managing Director and Chief Executive posits amounting to Rs 1.46 trillion as acquire 16,76,72,702 fully paid-up eq-
Officer of Chennai-headquartered In- on August 2021. Of these, about 86%, uity shares on preferential basis, i.e.,
dian Bank from today. or 368.6 million accounts, are opera- up to 74.24 per cent of the post issue

Prior to this, he served as Executive tive. paid-up voting equity capital of the
Director of Bank of Baroda since Sep- Seven years after the initiative was bank subject to compliance of regula-
tember 2018, according to a state- launched, the average deposit per ac- tory requirements," J&K Bank said in
ment. count is Rs 3,398, which has increased a filing with stock exchanges.
A Post-graduate in Commerce, and a 2.7 times over August 2015. About Earlier this week, the bank's board
qualified Chartered Accountant, Com- 312.3 million Rupay cards have been approved a fund raise of up to Rs 2,000
pany Secretary and CAIIB, Jain joined issued to Jan Dhan accountholders. crore through a mix of debt and equity.
Allahabad Bank in 1993 in middle man-
The government has also launched the This includes raising of equity share
agement cadre. In a career spanning
Jan Dhan Darshak - a mobile applica- capital up to Rs 1,000 crore in one or
more than 25 years in banking, he
tion to provide a citizen-centric plat- more tranches and another Rs 1,000
handled critical portfolios. Previously,
form to locate banking touch points crore by way of non-convertible Tier-2
he had worked in a range of industries
such as bank branches, ATMs, bank bonds in the nature of debentures on
for over six years.
correspondents, and post offices in the a private placement basis. LIC and East
country. Bridge Capital Master Fund hold
Family pension for bank around 2 per cent stake each in the
The app uses geographic information
staff hiked to 30% of last system (GIS) mapping facility to iden- bank.
pay tify inhabited villages that do not have
a banking touch-point within a distance NPS: Banks to make addi-
Family pension for bank employees is
of 5 km. About 99.95 per cent villages
set to increase with a uniform payout tional provision
are now covered either by a bank
of 30 per cent of the last salary, Public sector banks will have to make
branch or bank correspondent within
Debasish Panda, Secretary, Depart- an additional provision of over Rs.
a 5-km distance.
ment of Financial Services, said. 21,300 crore annually on account of
"In continuation of the 11th bi-partite Union territory govt stake revision of norms to calculate family
settlement on wage revision of public pension and higher contribution to-
sector bank employees, which was in J&K Bank to go up to ward National Pension System (NPS).
signed by the Indian Banks' Association 74.2% "Keeping in view the requirements of
with the unions on November 11, 2020, The Reserve Bank of India (RBI) has the Accounting Standard (AS15R) is-
there was a proposal for enhancement allowed the government of Jammu & sued by the Chartered Accountants of
of family pension and also the employ- Kashmir to acquire over 16.76 crore India and also as per the Companies
ers' contribution under the NPS. This
shares in Jammu & Kashmir Bank on a Accounting Rules (2006), the incre-
has been approved by the Finance Min-
preferential basis. The J&K mental provision towards the Family
ister," Panda, who was accompanying
government's equity stake will rise to pension as per the actuarial estimate
Finance Minister Nirmala Sitharaman,
74.24 per cent in the bank after the is Rs. 20,302.9 crore," a note prepared
said.
allotment. The issue follows a recent for the proposal, said.
decision of the J&K government to
430 million Jan Dhan Ac- The note also mentioned that special
transfer 8.23 per cent stake in the bank dispensation will be sought from the
counts have Rs. 1.46 tril- to the Union Territory of Ladakh. Reserve Bank of India (RBI) to allow
lion "The RBI vide its letter dated Septem- provisions over next five years to avoid
The PM Jan Dhan Yojana has about ber 2, 2021, has accorded approval to any immediate adverse impact on the
430.4 million accounts with total de- government of Jammu & Kashmir to balance sheets of the banks. T

BANKING FINANCE | OCTOBER | 2021 | 7