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Poor performance by public sector banks, says RBI report

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Reserve Bank of India New Delhi. Photo: UNI

[vc_row][vc_column][vc_column_text]The private sector banks and foreign banks earned net profits, but the public sector banks incurred a loss of Rs 180 billion

Parsa Venkateshwar Rao Jr[/vc_column_text][vc_column_text]The growth in the banking sector for 2015-16—according to RBI’s “Report on the Trend and Progress of Banking in India 2015-16”—fell to 7.7 per cent in 2015-16, from 9.7 per cent in 2014-15.

As the banks, especially the public sector ones, had to provide for the “delinquent loans”, the credit and advances, which is an indirect marker of economic activity, fell to a dismal 2.1 per cent in 2015-16 from 7.4 per cent in 2014-15.

Interestingly, the Current Account and Savings Account (CASA) deposits with private sector banks as well as foreign banks grew better than those with the public sector banks.  The growth of CASA deposits with private sector banks jumped to an impressive three per cent—from over 16 per cent to over 19 per cent.

While the Credit-Deposit (C-D) ratio of the banking sector as a whole remained static at 78 per cent, the C-D ratio of the private sector banks stood at 90.3 per cent.

The banking sector on the whole showed declining earnings on interest and non-interest incomes. It was mainly due to slowdown in the growth of credit. Though the sector is not in the red, profits fell by 60 per cent. The private sector banks and foreign banks earned net profits, but the public sector banks incurred a loss of Rs 180 billion, and net losses amounting to 148 per cent.

But the priority sector lending—which includes weaker sections, small and medium enterprises, agriculture and housing— showed a marked improvement, increasing from 9.3 per cent in 2014-15 to 16 per cent in 2015-16. The target for the priority sector lending was 40 per cent. The public sector banks achieved 39.3 per cent, private sector banks logged 45.1 per cent and foreign banks showed 35.3 per cent.

The recovery of non-performing assets (NPAs) for all the banks fell from Rs 307.92 billion in 2014-15 to Rs 227.68 billion in 2015-16. The public sector banks could recover only Rs 1,897.57 billon in 2015-16, compared to Rs 278.49 billion the previous year.

The report notes that recovery was better through the Lok Adalats and Debt Recovery Tribunals (DRTs) than through the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) channel. The recovery through SARFAESI reduced from Rs 256 billion in 2014-15 to Rs 131.79 billion in 2015-16.

Despite a slowdown in credit growth, the loan portfolio reveals an interesting profile. Loans in the housing sector accounted for 52 per cent, up by 16.4 per cent over the previous year, followed by personal loans, 29.8 per cent, which include educational loans, while auto loans stood at 11.1 per cent.

Meanwhile, the credit sensitive sectors, including capital and real estate, accounted for 20 per cent of the loans. Foreign banks lent 27.7 per cent, which is more than private banks, which stood at 26.3 per cent. The public sector banks loans in this sector were the lowest, at 16.9 per cent. An overwhelming chunk of the loans, 92.5 per cent, in this segment went to the real estate.

The ownership pattern of the banks shows that while the government maintains a majority stake in the public sector banks, 51 per cent, the non-resident shareholding in the PSBs, 11.9 per cent, contrasted with 72.7 per cent in the private sector banks.

Lead Picture: Reserve Bank of India New Delhi. Photo: UNI[/vc_column_text][/vc_column][/vc_row]

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Security forces arrest 14 Pakistani nationals with around 86 kg of drugs, worth Rs 600 crore near Gujarat Coast

The Indian Coast Guard took to X and wrote in a breathtaking overnight operation, Indian Coast Guard undertook an intelligence-based anti-narcotics operation at sea on 28 Apr 24. About 86 kg of narcotics which is worth Rs 600 crore has been apprehended along with the arrest of 14 Pakistani nationals.

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The Indian Coast Guard on Sunday announced the interception of a Pakistani vessel laden with 86 kg of narcotics valued at Rs 600 crore. Acting on intelligence, a joint operation involving the Indian Coast Guard, the Anti-terrorism Squad (ATS), and the Narcotics Control Bureau (NCB) was launched to combat drug trafficking in the area.

The operation was carried out by the agencies based on intelligence inputs received in the last few days. The Indian Coast Guard took to X and wrote in a breathtaking overnight operation, Indian Coast Guard undertook an intelligence-based anti-narcotics operation at sea on 28 Apr 24.

About 86 kg of narcotics which is worth Rs 600 crore has been apprehended along with the arrest of 14 Pakistani nationals. The operation was an epitome of inter-agency coordination wherein the Indian Coast Guard Anti-terrorism Squad and Narcotics Control Bureau  collaborated seamlessly which resulted in the successful operation.

The ships and aircraft of the Indian Coast Guard had been deployed on concurrent missions to carry out the operation. ICG ship Rajratan, which had Narcitics Control Bureau and Anti Terrorist Squad officials embarked, positively identified the suspect boat.

No amount of evasive maneuvering tactics and resistance employed by the drug laden Pakistani boat could save it from the swift and strong action of ICG ship Rajratan. This operation took place on the basis of a tip-off by the Indian Coast Guard, Narcotics Control Bureau and Gujarat Anti-Terrorist Squad in the Arabian Sea near the International Maritime Boundary Line.

The operation was the 2nd major anti-narcotics operation carried out by the security forces in the Arabian Sea in 1 month. Earlier on February 26, 5 foreign nationals were held off the Porbandar coast with 3,300 kg of narcotics, including charas. Recently a boat carrying 60 packets of drugs was seized and 6 Pakistani crew members onboard the vessel were arrested off the Gujarat coast in a multi-agency operation in March.

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2024 Lok Sabha Elections

Election Commission orders AAP to modify Lok Sabha campaign song

AAP minister Atishi attacked the ECI for putting a ban on the party’s Lok Sabha election campaign song. She said this has happened for the first time in the history of India that the Election Commission has put a ban on the election song of a political party.

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The Election Commission of India asked the Aam Aadmi Party to modify its election campaign song on Sunday. The Election Commission pointed out that the phrase jail ke jawaab me hum vote denge shows an aggressive mob holding the photo of Arvind Kejriwal showing him behind bars, casts a bad impression of the judiciary. The ECI added that the phrase appears several times in the advertisement which contravenes the provisions of ECI Guidelines and Rule 6(1\(g) of Programme and Advertising Codes prescribed under the Cable Television Network Rules, 1994.

AAP minister Atishi attacked the ECI for putting a ban on the party’s Lok Sabha election campaign song. She said this has happened for the first time in the history of India that the Election Commission has put a ban on the election song of a political party.

The Election Commission listed some of the phrases that it found in violation of codes. The phrase: Tanashahi party ko hum chot denge with the video clip showing the protesters clash with the police (running from 00:21 to 00:23) incites violence. The phrase: gunda gardi ke khilaf vote denge and Tanashahi karne wali party ko hum chot denge running from duration 00:27 to 00:32 Sec with the video clip showing Manish Sisodia being escorted by the police. The words and the video clip shows the police in bad light.

The Election Commision said the phrase: Awazein khilaf thi jo sabko jail me daal dia, bas unko hi bahar rakha jisne inko maal dia. Itna lalach, itna nafrat, bhrastachari se mohabbat shows slanderous remarks and is a criticism of BJP on the basis of unverified facts and also casts bad impression of the judiciary. The Election Commission stated that the phrase Tanashahi party ko hum chot denge with the video clip showing aggressive mob clashing with the police shows criticism of the ruling party based on unverified facts.

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2024 Lok Sabha Elections

PM Modi criticises Rahul Gandhi for allegedly insulting Hindu kings, accuses Congress of not addressing atrocities by Muslim rulers

The prime minister was addressing an election rally in Karnataka’s Belagavi where he said, the statements made by the Shehzada of Congress have been made very thoughtfully to appease their vote bank. But the Shehzada does not utter a word about the atrocities committed by the Nizams, Nawabs, Badshahs and Sultans.

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Prime Minister Narendra Modi on Sunday attacked Congress leader Rahul Gandhi for allegedly insulting Hindu kings but not saying a word on atrocities committed by Muslim rulers like Aurangzeb. The prime minister was addressing an election rally in Karnataka’s Belagavi where he said, the statements made by the Shehzada of Congress have been made very thoughtfully to appease their vote bank. But the Shehzada does not utter a word about the atrocities committed by the Nizams, Nawabs, Badshahs and Sultans.

Congress does not remember the atrocities committed by Aurangzeb who destroyed thousands of Hindu temples.  He said Congress forms political alliances with parties who praise Aurangzeb. PM Modi said the Congress do not talk about all those who destroyed Hindu pilgrimage sites, looted them, killed Hindu people, and killed cows.

The Prime Minister was referring to a video clip of Rahul Gandhi which was shared by many BJP leaders. In the video clip, the Gandhi is heard saying, during the rule of Rajas and Maharajas, they could do whatever they wanted and even grab someone’s land. The Congress fought for India’s independence and brought democracy in the country.

PM Modi also mentioned the death of a Karnataka Congress corporator’s daughter, who was killed by her former colleague in her college.  He said the Congress government gives priority to appeasement and for them, the lives of daughters like Neha have no value. The prime minister further added that the Congress is only concerned about its vote bank.

Neha Hiremath, daughter of Congress Councillor of Hubballi-Dharwad Municipal Corporation Niranjan Hiremath, was murdered on the campus of BVB College on April 18 by her ex-classmate Fayaz. PM Modi accused Congress for supporting anti national parties like PFI (Popular Front of India) for votes which is an anti-national organisation that gives shelter to terrorism and which has been banned by the Modi government.

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