OMG! SBI collected Rs 1771-cr charges from below minimum balance accounts in April-Nov

News Network
January 2, 2018

The below minimum balance in your account is indeed a bonanza for the banks. According data provided by the finance ministry, India's largest lender State Bank of India, from April to November in 2017, had collected a whopping Rs 1,771 crore as charges from customers who did not maintain their minimum monthly average balance (MAB) in their accounts.

It has been learnt that the amount is more than the bank’s July-September quarter net profit of Rs 1,581.55 crore and nearly half of the Rs 3,586 crore it earned as net profit from April to September.

SBI did not collect any money from levy of charges for non-maintenance of MAB during the 2016-17 financial year. The charges were re-introduced after a gap of five years during the current fiscal. The bank has a total of 42 crore savings bank accounts of which 13 crore are Basic Savings Bank Deposits Accounts and Pradhan Mantri Jan Dhan Yojana accounts, both categories exempted from levy of such charges.

SBI yesterday reduced the base rate and benchmark prime lending rates (BPLR) by 30 basis points each, which will benefit nearly 80 lakh customers on the old pricing regime. The nation’s largest lender revised down the base rate to 8.65 per cent for existing customers from 8.95 per cent, while the BPLR is down from 13.70 per cent to 13.40 per cent. The bank however did not change the marginal cost of funds-based lending rate (MCLR) which would have brought down the cost for all borrowers. The one-year MCLR of the bank stands unchanged at 7.95 per cent. The new rates will be effective yesterday, the bank said in a statement.

“We had done the rate review in the last week of December, and based on whatever deposits rates we had, our base rate was brought down by 30 basis points to 8.65 per cent now,” managing director for retail and digital banking, PK Gupta told reporters in a concall. Nearly 80 lakh customers who are on the old lending rate regimes and have not moved to MCLR, will be benefited from this reduction. Banks review MCLR on a monthly basis, while the base rate revision happens once a quarter.

Other banks

After SBI, Punjab National Bank recorded the highest collection of Rs 97.34 crore through levy of such charges during the April-November period followed by Central Bank of India’s Rs 68.67 crore and Canara Bank’s Rs 62.16 crore.

Punjab and Sind Bank is the only state-run lender which did not levy any charges during April-November and in 2016-17.

Comments

weenuji
 - 
Wednesday, 3 Jan 2018

SBI apart from MAB fee of rs 1771 cr had earned 42-13 39 cr accounts less about 3 cr account not maintained minimum ie 36 crores. For april-sep min bal was 5000/ considering rural semi urban an avg balance with SBi would be 3000/-. So 36X3000 108000cr was minimum balance and a fixed amount. This fixed amount would have at least earned 6 interest (lending rate >12 ), less Sb interest 4 paid. minimum 2 on 108000cr pocked by SBI. 108000x2/100x7/12 1260 cr. So SBI had pocked in most conservative and simple estimation overall 1771+1260 3031 cr money of SBI account holders

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News Network
March 7,2020

Bengaluru, Mar 7: As a precautionary measure to control the spread of coronavirus in Karnataka, the state government has planned to suspend biometric attendance for the time-being at its offices, also in corporate and IT companies, Medical Education Minister Dr K Sudhakar said on Saturday.

He said the government has taken all precautionary measures to control the spread of the virus in the state.

"Our Additional Chief Secretary has already spoken to IT companies yesterday on behalf of the government regarding guidelines that need to be followed, it is part of it...we will do it in the government also in the days to come," Sudhakar told reporters here.

He was responding to a question about suspending biometric attendance at offices in the wake of the coronavirus outbreak.

Asked about suspending biometric attendanceat government offices, he said, "we have planned to do it yesterday."

Sudhakar said so far in Karnataka not even one case has been identified, to that extent we have been taking precautionary measures effectively.

He said from villages to state capital Bengaluru at all levels the health department officials have been activated as part of the precautionary measures.

Also, committees headed by Deputy Commissioners have been formed in all district, he added.

"We have given certain guidelines to people. We have also included private hospitals. We have taken all precautionary measures to stop the virus from entering the state," he added.

In response to a question regarding masks, the Minister clarified that those who have the symptoms of the disease only should use them.

He said, "N95 masks are required only for those who have tested positive, there is not even a single positive case in the state so far...surgical masks that will have three layers can be used by those who have symptoms like cough, cold, fever."

In the state as a precautionary measure 2,500 beds have been kept ready if the situation arises, despite not having a single case.

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News Network
July 4,2020

Bengaluru, Jul 4: Karnataka Congress leader Dinesh Gundu Rao said on Saturday that he and his family would get tested for COVID-19 after one of his security persons tested positive for the infection.

Rao's family will also be in-home quarantine for the stipulated time.

"One of my police security person has tested positive for COVID yesterday. My family members and I are getting tested now and will be in-home quarantine for the stipulated time period. None of us are showing any symptoms," he said.

The total number of cases in Karnataka stands at 19,710. Out of them, 8,805 have recovered and 293 patients have lost their lives, according to the Union Health Ministry.

Across the country, the total number of cases stands at 6,48,315. As many as 3,94,227 patients have recovered so far and 18,655 have lost their lives due to the virus.

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News Network
May 3,2020

Bengaluru, May 3: Undergraduate and postgraduate students skipping online classes held by their universities run the risk of being debarred from writing their exams. 

State universities, which are monitoring the attendance of online classes, are asking their affiliate colleges to send the monthly online attendance details and this would reflect in their regular attendance. This would apply to those studying professional courses like medicine and engineering. 

State medical education minister Dr K Sudhakar has asked all medical colleges to regularly send attendance details to the Rajiv Gandhi University of Health Sciences (RGUHS).

RGUHS vice-chancellor Dr Sachidanand confirmed to DH that the varsity is indeed monitoring the attendance of students. “Online classes are equal to classroom teaching. (Such method of conducting classes) are necessary during the Covid-19 pandemic and the nationwide lockdown,” he said.

According to the Supreme Court directions, students should have 75% attendance to be eligible to appear for the final exams. There could be relaxations if they have health issues. If students are bunking online classes, it would reflect on their minimum attendance necessary to appear for the exams, the vice-chancellors of state-run varsities said.

Bangalore University vice-chancellor Prof K R Venugopal said most of the students are attending online classes and teachers are messaging the parents of those who are irregular. “(Of course) if they fall short of the minimum attendance, they won’t be allowed to appear for the exams,” he said.

Bengaluru North University vice-chancellor Prof T D Kemparaju said the administration has asked its teachers to record details of students attending online classes and update the university.

Mixed signals 

Meanwhile, the University Grants Commission (UGC) on Wednesday issued guidelines directing all universities to treat the lockdown period as “deemed as attended” for students and research scholars. Experts pointed out that the order would prompt students not to take the online classes seriously.

“Arrangements have been made at the state varsities to make students attend online classes compulsorily and students are also serious about it. Now, because of the UGC guidelines, they may bunk classes,” said the vice-chancellor of a state-run university.

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