Family pension of PSB employees hiked to 30% of last pay, could go up to ₹35,000

New Delhi: Union finance minister Nirmala Sitharaman who is in Mumbai on Wednesday to review the financial performance of public sector banks (PSB), informed that they have reported healthy profits. After making losses for five years banks have reported profits this year, the ministry said in a statement.

"PSBs have reported a profit of ₹31,817 crore in the financial year of 2020-21 as compared to a loss of ₹26,016 crore in the financial year of 2019-2020. This is the first year when PSBs have reported a profit after five years of losses. Total gross non-performing assets stood at ₹6.16 lakh crore as of March 2021, recording a reduction of ₹62,000 crore from March 2020 levels. Number frauds at PSBs have substantially come down to 2,903 in the financial year 2020-21 compared to 3,704 in financial year 2018-19," said the ministry of finance in an official release.

During the review meet a slew of announcements were made, all such key takeaways have been listed below:

Family members of deceased PSB bankers will now get a pension of 30% of last drawn salary as against the earlier income of ₹9,284.

· Contribution made by PSBs for employee pensions under the National Pension Scheme has been hiked to 14% from the earlier 10%.

· Sitharaman lauded PSBs for doing well “collectively” and for coming out of “prompt corrective action despite service extended during pandemic”.

· She also stated that deposits have been piling up the easter states of India, but credit needs to be expanded.

· The finance minister has also urged banks to extend assistance to the fintech sector.

Sitharaman has also urged banks to work with state governments to push the ‘one district, one export’ agenda. Banks have also been asked to interact with export promotion agencies, chambers of commerce and industry to understand and address the requirement of exporters in a timely manner.