( My Comment :- Bank can sacrifice Rs.1.61 lac crore in write off of bad loans in five years but cannot afford payment of even half of it for respectable wage hike of Bank Staff who work day and night for the safety and security of bank and for all comfort for people of India.)
NEW DELHI: The country's largest bank State Bank of India (SBI) has the highest number of branches running from rented facilities among public sector banks.
A total 85,356 branches of all public sector banks were running from rented buildings.
As of December 19, 2014, as many as 15,570 branches of SBI were running from rented accommodations, followed by Punjab National Bank with 6,596 such branches.
Canara Bank was running 5523 branches from rented places, and Bank of Baroda, 4,865 branches. The number of such branches for Bank of India and Union Bank was at 4,516 and 4,109 respectively.
However, as many as 4,699 branches of PSU banks running from rented facilities were pending lease renewal, according to an official data .
"Government has issed an advisory to all public sector banks that banks must ensure to renew all leases as per the contractual arrangement," as per the data report. Also, government has asked PSU banks to list out the pending cases for renewal in their boards once in six months.
Bad loan write offs double to Rs 42,477 crore in 3 years
NEW DELHI: The amount of bad loans written off or restructured by the PSU banks
has more than doubled in the last three years ending March 2014 to Rs 42,447 crore.
The rise in bad loans is being attributed to slowdown in the economy which slipped
to below 5 per cent in the two consecutive financial years -- 2012-13 and 2013-14.
The loans written off/compromised by PSU banks soared from Rs 20,752 crore in 2011-12 to Rs 32,992 crore in 2012-13 and further to Rs 42,447 in 2013-14.as per RBI report.
Reserve Bank Governor Raghuram Rajan has been highlighting the problem of rising bad loans in the banking sector.
He had earlier said that the "total write offs of loans made by the commercial banks in the last 5 years is over Rs 1.61 lakh crore, which is 1.27 per cent of GDP... To put this amount in perspective -- (it) would have allowed 1.5 million of poorest children to get a full university degree from the top private universities in the country, all expenses paid".
In order to deal with the problem of bad loans, RBI has recently issued a comprehensive framework for revitalising distressed assets in the economy.
The framework outlines the corrective action plan that will incentivise early identification of problem cases, timely restructuring of accounts which are considered to be viable and taking prompt steps by banks for recovery or sale of unviable accounts.
Public sector banks accounted for over 90 per cent of total non-performing assets (NPAs)
that the banking sector registered in 2013-14.
Of Rs 2.40 lakh crore gross NPAs reported by Indian banking system in 2013-14, Rs 2.16 lakh crore was accounted for by the public sector banks.
Private sector banks had gross NPAs of Rs 22,738 crore as of March 31, 2014. Link Economic Times
( My Comment :- Bank can sacrifice Rs.1.61 lac crore in write off of bad loans in five years but cannot afford payment of even half of it for respectable wage hike of Bank Staff who work day and night for the safety and security of bank and for all comfort for people of India.)
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