RBI imposes Penalty on this PSU Bank for irregularity in Savings Accounts

 

For not adhering to certain RBI regulations, Punjab & Sind Bank has been fined ₹68.20 lakh by the Reserve Bank of India (RBI). The penalty was imposed in accordance with Sections 47A(1)(c), 46(4)(i), and 51(1) of the Banking Regulation Act of 1949.

Based on the bank's financial status as of March 31, 2023, RBI carried out a Statutory Inspection for Supervisory Evaluation (ISE 2023) in 2023. 

 

The following areas showed non-compliance with RBI's instructions during the inspection: 

 Failure to disclose significant Exposures: In order to track significant common exposures across banks, the bank failed to disclose borrowers with non-fund-based exposure of ₹5 crore and above to the Central Repository of Information on Large Credits (CRILC). 

 Inconsistencies in Savings Bank Accounts: In violation of RBI regulations on financial inclusion, the bank permitted some holders of Basic Savings Bank Deposit Accounts (BSBDAs) to open additional BSBDAs.

After detecting these violations, RBI issued a show-cause notice to Punjab & Sind Bank, asking for an explanation. The bank submitted its reply, additional clarifications, and oral representations during a personal hearing. However, after reviewing the bank’s responses, RBI determined that the charges were valid, leading to the imposition of the penalty.

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Government will sell stake in three PSU banks, why this situation came?

The central government can sell stake in three big public sector banks. These three banks are UCO Bank, Punjab and Sindh Bank and Indian Overseas Bank. The government has more than 95% stake in these, the rest is with public investors.

Let us tell you that as per the Minimum Public Shareholding (MPS) rules of SEBI, all listed companies should have at least 25% public shareholding. Keeping this in mind, the government has made a plan to sell its stake.

Live Mint news quoted sources as saying that depending on market conditions, the three banks may conduct multiple rounds of qualified institutional placement (QIP) in FY2026 to meet regulatory requirements.

The government has allowed public sector banks to explore equity dilution this year and time their market offerings strategically, a source said. The stake sale is expected to be between 5-10% of the paid-up equity capital this year.

SEBI gave time till August 2026 to public sector banks to comply with the rule. At the same time, Life Insurance Corporation of India (LIC) was given time till 16 May 2027 to reach 10% public shareholding.

By December 31, 2024, seven of the 12 public sector banks—State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Indian Bank, Union Bank of India and Bank of India—had fulfilled SEBI's MPS requirement.

Bank of Maharashtra and Central Bank of India have not yet taken steps to comply with the MPS rule. Let us tell you that the government has 93.08% stake in Central Bank of India, 79.60% in Bank of Maharashtra, 95.39% in UCO Bank, 98.25% in Punjab and Sindh Bank and 96.38% in Indian Overseas Bank.

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Punjab and Sind Bank Recruitment for 110 Local Bank Officer (LBO)

Punjab & Sind Bank has officially released the notification for the recruitment of Local Bank Officer (LBO) posts. A total of 110 vacancies are available under the Punjab & Sind Bank LBO Recruitment 2025. The notification was issued on February 7, 2025, and the online application process will be open from February 7 to February 28, 2025.

 

Important Date

• Apply Online Start Date: 7 February 2025
• Last Date to Apply: 28 February 2025
• Last Date for Fee Payment: 28 February 2025
• Exam Date: To be released

Application Fee

• General/ OBC/ EWS: Rs. 850/-
• SC/ ST/ PWD: Rs. 100/-
• Mode of Payment: Online

Age Limit

• Minimum Age: 20 Years
• Maximum Age: 30 Years
• Age Limit as on 01/02/2025
• The age relaxation will be given as per the rules.

Educational Qualification

Post Name	Qualification
Local Bank Officer	Graduation + Knowledge of Local Language+ 18 Month Exp. in Officer Cadre in any Public Sector Bank/Regional Rural Bank

Selection Process

The Punjab & Sind Bank LBO Recruitment 2025 selection process includes the following stages:

• Written Exam
• Personal Interview
• Local Language Test
• Document Verification
• Medical Examination

Exam Pattern

Subject	Questions	Marks	Duration
English Language	30	30	30 Mins
Banking Knowledge	40	40	40 Mins
Banking Awareness / Economy	30	30	30 Mins
Computer Aptitude	20	20	20 Mins
Total	120	120	02 Hours

Notification PDF

Apply Online

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Punjab and Sind Bank Q3 Net profit zooms 147%

 

On Wednesday, January 15, the state-owned Punjab & Sind Bank said that its net profit for the third quarter, which ended on December 31, 2024, increased 146.72% year over year (YoY) to ₹282 crore. According to a regulatory filing, Punjab & Sind Bank reported a net profit of ₹114.3 crore for the equivalent quarter of the previous fiscal year. 

The difference between a bank's interest income from lending and the interest it pays depositors is known as net interest income (NII), and it rose 27% to ₹938.7 crore from ₹739.2 crore in the same quarter of FY24.

Compared to 4.21% in the September quarter, gross non-performing assets (NPA) were 3.83% in the December quarter. Net NPA was 1.25% as opposed to 1.46% on a quarterly basis (QoQ). Against ₹150.6 crore sequentially and ₹96.3 crore (YoY), provisions were ₹109.3 crore. 

According to people with knowledge of the situation, the government authorized a ₹10,000 crore fundraising plan yesterday for five state-run lenders through a qualified institutional placement (QIP). 

According to sources, four additional lenders—Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, and Central Bank of India—have been given permission to raise money in addition to the Bank of Maharashtra. According to the sources, these lenders may begin raising money in tiny installments as early as the fourth quarter of the 2025 fiscal year.

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Government plans to sale stake in five PSU banks

A Rs.10,000 crore fund-raising plan for five state-run institutions via the Qualified Institutional Placement (QIP) route has been approved by the government.



According to sources, four additional lenders—Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, and Central Bank of India—have been given permission to raise money in addition to the Bank of Maharashtra. According to the sources, these lenders may begin raising money in tiny installments as early as the fourth quarter of the 2025 fiscal year.

"The Department of Disinvestment and Public Asset Management (DIPAM) has also been mandated to sell a stake in these lenders through the Offer For Sale (OFS) route," the sources noted.



By August 2026, the government hopes to have a minimum of 25% of these PSU banks' shares held by the general people. The Department of Financial Services has administrative authority for state-run lenders.



According to the most recent shareholding pattern on the BSE, the government owns 79.6% of Bank of Maharashtra, 98.25% of Punjab & Sind Bank, 96.38% of Indian Overseas Bank, 95.39% of UCO Bank, and 93.08% of Central Bank of India as of the end of the December quarter.Based on the current share price, the excess government stake in these five lenders stands at nearly Rs.50,000 crore.

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Punjab & Sind Bank Q2 net up 26.98%

 

State-owned Punjab & Sind Bank on Saturday reported a 26 per cent rise in net profit to Rs 240 crore in the September quarter on the back of reduction in bad loans.The lender had recorded a net profit of Rs 189 crore in the same quarter a year ago.

Total income increased to Rs 3,098 crore during the quarter under review from Rs 2,674 crore a year earlier, Punjab & Sind Bank said in a regulatory filing.The bank earned an interest income of Rs 2,739 crore during the quarter, compared to Rs 2,406 crore in the same period a year ago.

Return on asset of the bank improved to 0.65 per cent at the end of September 2024 as against 0.52 per cent at the end second quarter of previous financial year.Asset quality of the bank improved with gross non-performing assets declining to 4.21 per cent of the gross loans by the end of September 2024 from 6.23 per cent a year ago.

Return on asset of the bank improved to 0.65 per cent at the end of September 2024 as against 0.52 per cent at the end second quarter of previous financial year.Asset quality of the bank improved with gross non-performing assets declining to 4.21 per cent of the gross loans by the end of September 2024 from 6.23 per cent a year ago.

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Punjab & Sind Bank Q1FY25 results: Net profit rises 19%

 

State-owned Punjab & Sind Bank on Friday reported a 19 per cent rise in net profit to Rs 182 cr in the June 2024 quarter, helped by a decline in bad loans.The Delhi-based lender had earned a net profit of Rs 153 cr in the year-ago period.

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During the quarter, the bank's total income increased to Rs 2,846 cr against Rs 2,494 cr a year ago, Punjab & Sind Bank said in a regulatory filing.Interest income grew to Rs 2,652 cr during the period under review from Rs 2,316 cr in the corresponding quarter a year ago.

The bank's asset quality improved with Gross Non-Performing Assets (NPAs) declining to 4.72 per cent of gross advances as of June 30, 2024, against 6.80 per cent by the end of the April-June quarter in FY23.

Net NPAs also declined to 1.59 per cent of the advances from 1.95 per cent at June-end FY24.Provisions for bad loans rose to Rs 103 cr against Rs 23 cr earmarked a year ago.The bank's Capital Adequacy Ratio also improved to 17.30 per cent compared to 17.19 per cent on June 30, 2023.

The board also approved to raise funds of Rs 3,000 cr by issue of Basel III compliant Additional Tier I Bonds/Tier II Bonds or any combination, it said.

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Latest Bank Merger News : 4 PSU Banks likely to be merged

According to sources, the government has formulated its plan for the second round of merger of PSU banks. The government is considering two options for merging four small government banks. To facilitate the merger, changes are being prepared in the Banking Regulation Amendment Act. One option is to merge UCO Bank, Bank of Maharashtra, Punjab & Sind Bank, and Central Bank of India.

The second option involves merging with Union Bank of India, Canara Bank, or Indian Bank according to the banking software. 

The government aims to make these changes in the Banking Regulation Amendment Act to facilitate the merger process. 

The functioning of UCO Bank, Punjab & Sind Bank, Bank of Maharashtra, and Central Bank has shown improvement in the past few years. This is a developing story.

Let us tell you that the government has a 98.25 per cent stake in Punjab & Sind Bank.

While the government has a 93.08 per cent stake in Central Bank, 86.46 per cent in Bank of Maharashtra and a 95.39 per cent in UCO Bank.

The government had announced the merger of 10 public sector banks into four entities in 2019.

This was part of the government's policy to strengthen public sector banks (PSU Bank Mergers) to strengthen their finances for a strong national presence and global reach.

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