Page 7 - Banking Finance January 2025

BANK UPDATE

while continuing recovery efforts. The ment) Bill, 2024, Sitharaman empha-
Reserve Bank of India clarified that sized the stability and health of PSBs, Attention Subscribers
write-offs do not waive borrowers' li- which have turned consistently profit- Please renew your Subscription of The
abilities, with recovery proceedings able. The bill, passed by voice vote, Insurance Times Journal to receive
remaining active. amends multiple banking laws to en- copy of the journal uninterruptedly.
hance governance and regulatory You can now pay by GPAY, Phonepe,
Public Sector Banks Post oversight. Paytm, Amazon, ICICI Pay, BHIM UPI
Record Profit of Rs. 85,520 Sitharaman attributed the sector's
turnaround to reforms implemented
Crore in H1 FY25
since 2014, aimed at ensuring the sta-
Public sector banks, including SBI, re- bility and safety of Indian banks, which
ported a record net profit of Rs. remain critical to the nation's eco-
85,520 crore in the first half of FY25, a nomic growth.
26% increase from Rs. 67,850 crore in
the same period last year. The robust Supreme Court Removes
performance follows transformative
reforms, including improved gover- 30% Cap on Credit Card
nance, enhanced asset quality, and in- Late Payment Interest
creased credit monitoring.
Rates
PSBs also strengthened shareholder
The Supreme Court has overturned a
value, distributing Rs. 61,964 crore in
2008 order by the National Consumer
dividends over three years. The gov-
Disputes Redressal Commission
ernment credited the gains to a stable
(NCDRC) that capped credit card late
and professional banking environment,
payment interest rates at 30% per
emphasizing their critical role in na-
annum, providing relief to banks. The
tional growth.
decision concludes a 16-year legal
battle involving major lenders such as
Indian Banks Achieve Standard Chartered Bank, Citibank,
Sashi Publications Easy Payment
Record Profits Under Pro- American Express, and HSBC. Modes :-
fessional Management: A bench comprising Justices Bela i) UPI ID: SASHIBOOKS@KOTAK
Trivedi and Satish Chandra Sharma ii) GPAY: 9830171022@okbizaxis
FM Sitharaman ruled that the NCDRC lacked jurisdic- iii) PAYTM: 9830171022@paytm
Finance Minister Nirmala Sitharaman tion to impose a ceiling on credit card iv) NEFT: Current A/C
lauded the Indian banking sector's pro- interest rates, as such regulation falls 402120110000327 of 'SASHI
fessional management and robust per- under the purview of the Reserve Bank PUBLICATIONS PRIVATE
formance, highlighting record profits of India (RBI). Banks had argued that LIMITED, Bank of India, VVK
of Rs 1.41 lakh crore in FY24. Public interest rates are part of a statutory Road Branch., Kolkata, India,
sector banks (PSBs) collectively earned framework overseen by the RBI and IFSC Code : BKID0004021
Rs 85,520 crore in the first half of cannot be subject to separate con- v) Credit Card:
FY25, showcasing their operational sumer commission mandates. www.sashipublications.com
and financial resilience. This ruling reaffirms the RBI's author- For any query please call
Addressing the Lok Sabha during a de- ity over banking regulations, ending 9073791022/9883398055
bate on the Banking Laws (Amend- the long-standing dispute. www.sashipublications.com

BANKING FINANCE | JANUARY | 2025 | 7