The Finance Ministry is considering a proposal to increase the posts of Chief General Managers in Public Sector Banks (PSBs) in view of the increasing business and profitability. As per existing government guidelines, there can be one Chief General Manager (CGM) for four General Managers in PSBs. Sources said that these guidelines were issued in 2019 and since then there has been a significant improvement in the performance of public sector banks despite the Covid-19 pandemic. Sources said that there has been a significant growth in the business of PSBs and due to this they have registered record profits. He said the Department of Financial Services under the Finance Ministry is reviewing the CGM posts to be filled by public sector banks to achieve the next level of growth.
Sources said the decision to relax the guidelines will be taken after a thorough investigation and considering the need to carry forward their business. The CGM post was created in 2019 after the merger of 10 nationalized banks into four big banks. The CGM acts as an administrative and functional liaison between the General Manager and the Executive Director. Apart from this, the public sector banks have also requested the Department of Financial Services that the Board of Directors should be allowed to decide the number of posts as per their business requirements.
Nearly four lakh officers in 12 public sector banks
“The current ratio of GM/DGM/AGM is 1:3:9, which is based on the 2016 situation, and should be reviewed for better functional controls,” said a senior executive of a nationalized bank. He said this would help in improving the appointment of senior officers. About four lakh officers are employed in 12 public sector banks.
Total profit of banks crosses Rs 1.4 lakh crore
The total profit of public sector banks crossed Rs 1.4 lakh crore last fiscal, an increase of 35 per cent over the previous year on a high base of Rs 1 lakh crore. In the financial year 2022-23, 12 public banks together had earned a net profit of Rs 1,04,649 crore.
Improvement in bad loans of UCO Bank through NCLT in the second quarter of 2024-25.
UCO Bank recovered Rs 414 crore from 26 accounts through NCLT during the second quarter of the current financial year. An official gave this information on Sunday. He said that of the recovered amount, Rs 393 crore came from 14 resolution accounts and Rs 21 crore came from 12 accounts under insolvency proceedings.
“During the July-September quarter, Rs 414 crore was recovered from resolution accounts and accounts under insolvency proceedings,” a senior bank official told PTI. Recovery through the resolution process during the period was Rs 393 crore.” He said recovery during the quarter under the government-backed National Asset Reconstruction Company Limited was negligible, with only one account worth Rs 4 crore being settled. The official said that as of September 30, 2024, UCO Bank had 238 accounts, which were referred for the Insolvency and Bankruptcy Code (IBC) process. The total amount under these was Rs 18,163 crore.
