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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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Indore voter deletions: 1.36 lakh names, but digital records not maintained

Replies to an RTI concerning 1,36,552 voter deletions in Indore in 2022 said several constituency offices had not maintained the requested digital records.

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MP High Court

RTI replies concerning 1,36,552 voter deletions in Indore in 2022 said several constituency offices had not maintained the requested digital records from Garud and ERO Net. 

The deletions took place between January 5 and October 15, 2022, and therefore predate the current Special Intensive Revision (SIR) exercise. However, the subsequent RTI correspondence has brought attention to how records related to those deletions were maintained.

RTI replies say digital records were not maintained 

The RTI application, filed by former Indore councillor Dilip Kaushal, sought information related to entries made through the Garud app and ERO Net, along with material concerning decisions taken by Electoral Registration Officers.

Several constituency election offices responded that the requested digital records had not been maintained.

The Depalpur election office said it had not maintained digital records relating to ERO Net or the Garud app used by Booth Level Officers. Similar responses came from officials in Indore-2, Indore-5, Rau and Sanwer.

The Indore-1 and Indore-3 offices said requested digital material, including video and other copies, had not been maintained because there were no Election Commission instructions to preserve such records at the time.

The Indore-4 office said the deletion process through Garud and ERO Net was routine work carried out under Election Commission instructions, but the constituency office had not maintained the digital material sought in the RTI application.

1.36 lakh deletions across Indore constituencies

The 1,36,552 deletions cited in the application were spread across several Assembly constituencies.

Indore-4 accounted for 28,391 deletions, while Indore-5 recorded 28,091. Rau had 21,346 deletions.

The application also listed 19,983 deletions in Indore-2, 12,102 in Indore-1 and 8,107 in Indore-3. Sanwer accounted for 8,531 deletions and Depalpur for 2,214.

Together, Indore-4 and Indore-5 accounted for 56,482 deletions, while adding Rau’s figure took the combined total to 77,828.

Madhya Pradesh High Court directs action on RTI appeal

Kaushal pursued the matter after receiving the replies and filed a second appeal before the State Information Commission.

The Madhya Pradesh High Court has now directed the State Information Commission to decide the pending appeal on its merits and in accordance with law.

Justice Sandeep N Bhatt’s September 17 order asked the authority to decide the matter as expeditiously as possible, preferably within 45 days of receiving a certified copy of the order, and communicate the outcome to Kaushal.

The appeal had been pending since January 30, 2026.

Kaushal had also raised the issue with Chief Election Commissioner Gyanesh Kumar, Election Commissioners Sukhbir Singh Sandhu and Vivek Joshi, and the Madhya Pradesh Chief Electoral Officer in July 2025.

The RTI trail relates to voter deletions carried out in 2022 and does not itself establish that the deletions were part of the current SIR exercise.

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Yogi Adityanath transfers over Rs. 148 crore to 4.60 lakh students

Uttar Pradesh Chief Minister Yogi Adityanath transferred over Rs. 148 crore to the bank accounts of more than 4.60 lakh students under the state’s scholarship and fee reimbursement programme.

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Yogi Adityanath

Uttar Pradesh Chief Minister Yogi Adityanath transferred more than Rs. 148 crore in scholarship and fee reimbursement funds to over 4.60 lakh students on Saturday, according to the report.

The funds were transferred to students through their bank accounts as part of the state’s scholarship and fee reimbursement programme.

The initiative covers students from different social and economic categories and is aimed at ensuring that financial difficulties do not prevent them from continuing their education.

Yogi Adityanath’s message to students

During the programme, the Uttar Pradesh Chief Minister said that no student should have to discontinue education because of a lack of funds.

He stressed the government’s commitment to providing students with equal opportunities to pursue their education and move forward in life.

The scholarship and fee reimbursement support is intended to provide financial assistance to eligible students while helping them continue their studies.

Scholarship support for UP students

The latest transfer covers more than 4.60 lakh students and involves over Rs. 148 crore in financial assistance. The programme includes scholarship and fee reimbursement support for eligible students.

Other reports on the October 3 distribution said the amount covered students belonging to the Other Backward Classes, Scheduled Castes, general category and minority communities.

The Uttar Pradesh government has also highlighted the use of automation in the scholarship distribution process, saying it has improved transparency and helped ensure timely payments to students.

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Tariffs, export controls increasingly used for strategic purposes, says PM’s Principal Secretary

PM’s Principal Secretary P K Mishra said tariffs, export controls and other restrictions are increasingly being used for strategic purposes amid growing global economic uncertainty.

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PM’s Principal Secretary P K Mishra has said tariffs, export controls and other restrictions are increasingly being deployed for strategic purposes as countries deal with greater economic uncertainty and disruptions to global supply chains.

Speaking at the Kautilya Economic Conclave in New Delhi on Saturday, Mr Mishra highlighted the changing nature of economic risks and the need for countries to build resilience without withdrawing from the global economy.

He said the distinction between conventional risks and uncertainty has become increasingly important for economic decision-making. While risks can generally be assessed in terms of probability, uncertainty makes it more difficult to determine the likelihood of different outcomes.

Tariffs and restrictions becoming strategic tools

Mr Mishra said economic disruptions are no longer limited to traditional market risks. Wars, interruptions to shipping routes and geographical choke points can affect food, energy and supply chains across countries.

Referring to such developments, he said tariffs can sometimes become instruments of weaponisation, while other restrictions are increasingly being used for strategic purposes.

He also said export restrictions, sanctions and tariffs can serve purposes beyond conventional commercial objectives, bringing geopolitical considerations more prominently into economic policymaking.

The comments came against the backdrop of discussions on economic resilience at the fifth Kautilya Economic Conclave, whose theme focuses on dealing with global shocks while preserving growth and openness.

India focuses on economic resilience

Mr Mishra said India’s economic strength is supported by its macroeconomic fundamentals and that the country has maintained a high level of growth despite global uncertainty.

He argued that resilience does not require choosing between complete self-sufficiency and globalisation. Instead, countries need to build domestic capabilities in strategically vulnerable areas, diversify sources of supply where concentration creates risks and remain open where global integration supports productivity and competitiveness.

India’s electronics sector, along with pharmaceuticals and semiconductors, provides examples of areas where domestic capabilities can help reduce vulnerability while remaining connected to global markets, he said.

Geography becomes an economic factor

Mr Mishra also pointed to the impact of disruptions around major shipping routes. He said geographical choke points can become sources of vulnerability, particularly for a country such as India that is a major energy importer.

He said India’s response has included maintaining stocks, increasing domestic production where possible and diversifying procurement and supply routes.

The broader issue, according to Mr Mishra, is how economies can preserve the gains of globalisation while becoming less vulnerable to shocks and excessive concentration in particular suppliers or geographical regions.

He said building resilience carries an economic cost, meaning governments need to assess where investment in resilience is justified by the potential economic and social impact of a disruption.

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