“I held an in depth assembly with circle heads and regional heads, and we’ve drawn up a technique. We see it as a enterprise alternative and need to reply shortly,” Canara Financial institution MD & CEO Okay Satyanarayana Raju advised ET.
The federal government has set a deadline of September 20 for all its departments, universities, PSUs, native our bodies and different government-run organizations to withdraw deposits made on the two banks and shut the accounts over the alleged defaults of big-ticket time period deposits by the banks.
Senior officers, in a chat with ET, estimated the federal government funds parked at SBI at about Rs 6000 crore. Estimates concerning the measurement of the funds parked at PNB weren’t instantly accessible.
“We’ve taken the choice to ship a stern message to the 2 banks,” a senior authorities official advised ET. Canara Financial institution has determined to pursue the chance as its officers have been engaged with the state authorities with the financial institution being the convenor of the state stage bankers’ committee (SLBC).
“We’ve a long-standing relationship with the Karnataka Authorities and have been in contact with prime officers. We’ve additionally been operating many CSR initiatives for the State,” Raju stated. Dr Ambedkar Vidya Jyothi Scholarship programme is one in every of them, he added.“Our financial institution has all the time performed its personal function within the growth of Karnataka. We’ve a long-standing bonding with the state and therefore have rather more duty in direction of it,” the Canara Financial institution MD stated.High SBI officers, nevertheless, are persuading the State Authorities to withdraw its round. The banking behemoth, in a press release, stated it was in talks with the federal government to succeed in an ‘amicable decision.’
“Because the matter is at the moment sub judice, we’re unable to offer any particular feedback at the moment. Nevertheless, we stay in ongoing discussions with the Authorities of Karnataka to resolve the problem amicably,” SBI stated.
The Finance division round detailed how the Karnataka Industrial Areas Growth Board (KIADB)did not recuperate a deposit from PNB and the Air pollution Management Board was denied an identical deposit by the SBI.