The details of VRS is not known as yet. Sources in the SBI said all associate bank employees opting for it would get similar benefits
The RBI Governor said that the objective of ending terror funding, and counterfeits, and unearthing of black money would be achieved through this move.
The central bank has revised GVA growth projections for 2016-17 by 50 basis points to 7.1% with evenly balanced risks.
While Ujjivan on Monday announced a repayment rate of 91% in November, Bharat Financial informed the BSE it had a collection efficiency of 97% in the two weeks post demonetisation.
“The ground-level situation has shown sharp improvement from the initial few weeks of November. Borrowers have shown good repayment discipline.”
SBI said it would sell up to 5% of its stake and is in talks with global sovereign wealth funds and strategic investors.
While excess of liquidity make bond yields fall sharply and treasury heads happy, this may turn out to be costly for banks if they don’t find ways to deploy such a huge stack of cash.
She, however, said that bigger MFIs with deep pockets and overseas funding and the ability to withstand difficulties did not face such an issue so far.
A recent Reserve Bank of India direction giving additional 60 days relaxation on asset classification norms to these lenders has also aggravated the confusion.
SBI fears that depositors in associate banks who are used to communicating with officers in their mother tongue, in whichever corner of the country the branch is, may also leave.
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