Four public sector banks today reported a decline in their net profits, reflecting the difficult conditions they face amid an economic slowdown and rising bad loans.
Net profit of Bank of India (BoI), Punjab National Bank (PNB), Union Bank of India and Syndicate Bank dropped during the first quarter ended June.
As I have been writing in my blogs that no power can stop public sector banks from increase and continuous increase in volume of Non Performing assets. The performance of public sector bank majors such as Punjab National Bank, Union Bank of India, Bank of India and Syndicate Bank for the first quarter ended June, 2015 has disappointed bankers ,stock market, investors and the analysts alike.
Bank of India has posted a net profit of Rs.130 crore for the quarter ended June 30, which was down by 84 percent from a year ago in the same period.
Union Bank of India reported a net profit of Rs.519 crore for the first quarter ended June 30, 2015 compared to Rs.664 crore a year ago.
Punjab National Bank (PNB) posted a 48.7 per cent plunge in its first quarter net profit at Rs.721 crore, dragged down by higher bad loan provisioning and subdued credit growth.
Syndicate Bank witnessed a 38 per cent dip in its net profit for the first quarter ended June 30, 2015 due to higher tax expense.
Kanpur bank credits billions in housemaid’s a/c-Times of IndiaIn a strange quirk of fate, a domestic help living in a city slum become the richest woman on the planet on Friday, when billions of rupees were transferred to her bank account mistakenly by a public sector bank. Her euphoria, however, was short-lived when the bank froze her account after realizing the mistake.
The incident happened with a domestic help, Urmila Yadav, who lives in Madarpur slum in Vikasnagar area of the city. "I have my account at the Vikas Nagar UPSIDC branch of State Bank of India. I got the shock of my life on Friday when I accessed my bank passbook to check the balance," she told TOI.
"On July 24, my guarantor Lalta Prasad handed me my SBI passbook. I was shocked to see that an amount of 'Rs 95711698647130' was credited to my savings bank account. After finding such a huge amount entered in my passbook, I immediately went to the bank with my guarantor. To my surprise, the computer at the bank also showed the same amount of 'Rs 95711698647130' in my account," said Urmila in his early 30s while talking to TOI.
Stunned over the development, the bank officials immediately apprised their seniors who in turn froze the account. Rakesh Kumar Khatri, manager of the SBI branch where Urmila maintains the account, confirmed the development and said that the bank has withdrawn the money from Urmila Yadav's account.
"We will check how this happened and who made the blunder," said Khatri. "The bank has now activated Urmila's account after rectifying the error. The computer data is now displaying the correct balance of Rs 2,000 in her saving account," he added.
"Now, they have deleted everything and there is no such record of the episode in my account statement," Urmila said, adding that the only proof she had of her fleeting wealth lies in printouts and bank statements.
"On June 23, I had opened a savings account under Prime Minister's Jan Dhan Yojna by depositing Rs 1,000 with the SBI's UPSIDC branch in Vikas Nagar. Similarly, on June 30, I further deposited a sum of Rs 1000 in the account. Now, this is what all remains with me," she said.