The State Bank of India (SBI) is likely to be among 24 public sector banks ineligible for Rs 50,000 crore EPFO investments made in bank deposits each year by the Employees' Provident Fund Organisation, the country's largest retirement fund.
SBI Recruitment 2014 full details
The Employees' Provident Fund Organisation (EPFO), that manages over Rs six,00,000 large integer of retirement savings entrusted to that obligatorily by eight.15 large integer staff, will not invest within the bonds and deposit instruments of those banks as their dangerous loan levels have broken its internal threshold to outline 'safe' investments.
As several as twenty four of the twenty nine public sector banks have internet non-performing assets of over a pair of of their internet advances, disabling them from profitable and inevitable inflows from the PF department. These embrace giant lenders like geographic region commercial bank -1.64 try to the Union Bank of India -4.09 %.
"As per the investment pointers for provident fund savings, the EPFO will currently solely invest in term deposits of 5 public sector banks — Bank of Baroda -1.33 %, Canara Bank -2.15 %, Syndicate Bank -2.44 %, Vijaya Bank three.20 try to Bank of India," same a senior government official. "These 5 banks aren't the largest, however their dangerous loans area unit still below the edge limits set by the board," he said.
With the economy shrinking for 2 years running, coinciding with a pointy contraction in producing and mining output, the spectre of dangerous loans has worse across the banking sector in 2013-14, with thirty six banks reportage gross NPAs of Rs a pair of,34,014 crore, twelve months over a year past.
SBI Recruitment 2014 full details
The Employees' Provident Fund Organisation (EPFO), that manages over Rs six,00,000 large integer of retirement savings entrusted to that obligatorily by eight.15 large integer staff, will not invest within the bonds and deposit instruments of those banks as their dangerous loan levels have broken its internal threshold to outline 'safe' investments.
As several as twenty four of the twenty nine public sector banks have internet non-performing assets of over a pair of of their internet advances, disabling them from profitable and inevitable inflows from the PF department. These embrace giant lenders like geographic region commercial bank -1.64 try to the Union Bank of India -4.09 %.
"As per the investment pointers for provident fund savings, the EPFO will currently solely invest in term deposits of 5 public sector banks — Bank of Baroda -1.33 %, Canara Bank -2.15 %, Syndicate Bank -2.44 %, Vijaya Bank three.20 try to Bank of India," same a senior government official. "These 5 banks aren't the largest, however their dangerous loans area unit still below the edge limits set by the board," he said.
With the economy shrinking for 2 years running, coinciding with a pointy contraction in producing and mining output, the spectre of dangerous loans has worse across the banking sector in 2013-14, with thirty six banks reportage gross NPAs of Rs a pair of,34,014 crore, twelve months over a year past.
