VisVoice

  Fellow Bankers:  Why this mad run after a mirage? In the last fortnight, Reserve Bank of India (RBI/Regulator) imposed hefty fines on two major private banks for non-regulatory compliance and also directed a large public sector bank (PSB) to suspend further onboarding of new/existing customers onto the latter's 'mobile app' with immediate effect. According to RBI, while the fines on the major private banks are for violations/non-compliance in respect of outsourcing service provider/engagement of recovery agents, levy of charges in foreclosure of loans and non compliance of statutory and other  restrictions in sanction of loans and advances, the direction to the PSB to stop onboarding further customers was issued in the light of 'material supervisory concerns' observed in the manner in which the customers were added in the bank's app. The action in respect of the private banks can be tagged to deficiencies in corporate governance in the said banks and its branc...

Impressive turnaround of Bank of Maharashtra Bank of Maharashtra (bank) was one of the few banks that were left out of the exercise of merger of public sector banks (PSBs) in 2019. (Ten PSBs were merged into four). The bank incurred a net loss of Rs.4784  cr. in the financial year ended 2019. The bank took the decision of the central government as a ‘blessing in disguise’ and started its turnaround. From the huge net loss reported in FY 2018-19, the bank reported a modest net profit of Rs.389 cr. in FY 2019-20. Since then, as shown in the following table, the bank had grown from strength to strength in the last 42 months, marked by 72% growth in business levels and improving by six times its net profit  that was reported in March 2020.                                                             ...