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
July 13,2020

Bengaluru, July 13: As Bengaluru prepares for a seven-day lockdown from Tuesday following the spike in COVID- 19 cases, opposition parties in Karnataka have urged the government to enforce the measure in the entire state.

JD(S) patriarch H D Deve Gowda and Congress working president Eshwar Khandre have demanded that the entire state be placed under lockdown.

Welcoming the government's decision to implement the lockdown in Bengaluru Urban and Rural, Gowda said, "I urge the government through the media to enforce lockdown in the entire state."

The former Prime Minister in a statement appealed to people of the state and the entire country to wear masks while venturing out, maintain social distancing, clean hands with sanitizer regularly, and to come out only if there is necessary work.

Stating that allegations of misappropriation have been made by several leaders against the government in implementing measures and packages to control spread of the virus and its impact, Gowda said, "whatever it is let's discuss about it in the next legislature session, at present health of the people is important and let's focus on it."

The government should work in this direction, we are all with the government, let's not play with the health of the people, he said, adding that "I appeal that at least from here on work actively."

With a spike in Covid-19 cases, the Karnataka government on Saturday announced complete lockdown in Bengaluru Urban and Rural from July 14 to 22.

The lockdown is from 8 pm on July 14 to 5 am on July 22.

Congress leader Khandre, meanwhile reminded Chief Minister B S Yediyurappa that COVID cases and related fatalities were not only increasing in Bengaluru but also in the border districts of the state.

The situation was getting out of hand in Bidar, Kalaburagi, Yadgir, Raichur, Koppal, Ballari districts, he alleged.

"So implement strict lockdown once again in the state at least for fifteen days."

"Bring the situation under control. I appeal to the government that in this lockdown period at least to correct its past shortcomings and take all measures to face the pandemic efficiently in the future," he tweeted.

Meanwhile, Chief Minister B S Yediyurappa will be chairing video conference with Deputy Commissioners, Zilla Panchayat CEOs and Superintendents of Police of various districts regarding the COVID situation and the rains.

As of July 12 evening, cumulatively 38,843 COVID-19 positive cases have been confirmed in the state, which includes 684 deaths and 15,409 discharges.

Bengaluru Urban district tops the list of positive cases, with a total of 18,387 infections. Of the 2,627 fresh cases reported in the state on Sunday, a whopping 1,525 cases were from Bengaluru Urban alone.

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News Network
May 16,2020

Kalaburagi, May 16: Former Karnataka Minister Dr Sharanprakash Patil, who was booked for violating COVID-19 imposed lockdown guidelines said on Friday that it was "politically motivated".

"It's politically motivated, the officer who filed the case was forced by MLA or some other people. As elected representatives, we're going in the constituencies, listening to people as they're apprehensive about the return of migrants. We had not conducted any meeting. Wherever we have gone we have followed social distancing," Patil said.

Patil said, "When I had gone there people came to discuss about a local problem and I was talking to an official concerned. In the meantime, some officer gave a complaint that we have violated the lockdown or something."

"They are trying to curb the voice of opposition because there are a lot of lacunae. We hear complaints about quarantine centres that there is no proper facility for food, or stay, or bathrooms," the Congress leader said.

The FIR was registered on Thursday against 23 persons, including the former MLA and 21 local Congress leaders, under Section 188 (disobedience to order duly promulgated by a public servant) of the Indian Penal Code (IPC).

Congress leader Patil and his followers had conducted a meeting at a convention hall in Sulpeth town on May 13, following which sectoral magistrate Muneer Ahmed lodged a complaint.

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January 21,2020

Yadgir, Jan 21: A bag was found abandoned at the Yadgir Bus Stand on Tuesday morning that left the commuters in panic.

After receiving the information, a police team, along with a sniffer dog, rushed to the spot. When the bag was checked, the police found clothes and cash in it.

It is stated that a passenger might have left the bag in a hurry to catch the bus.

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