About 1 lakhs jobs in banking sector ( SBI , BOB, Syndicate bank, canara bank ) get ready for it…..
Why There may be more vacancies in banks in 2019?
As we know that the central government had announced a Rs. 2.11 Lakh Crore capital infusion plan for state-owned banks to boost the economy, which it said was “poised for takeoff” after short term disruption caused by structural reforms.
The banks burdened with bad Loans will get Rs. 1.35 Lakh crore from bonds, Rs. 18,000 crore from the Budget and raise the remaining Rs. 58,000 crore through share sales.
Strengthening banks will lead to more jobs, more growth and more investment. The decision to recapitalize the Public sector banks with Rs. 2.11 Lakh crore will address the bank balance sheet problem and push growth forward said the Finance minister. The government said capitalization will help create more jobs, and spur growth and investments by creating bigger and stronger public sector banks. It also indicated that not all state run banks will be equally supported.
This milestone announcement on recapitalizing banks in one go is a bold and courageous move and was indeed the need of the hour,” said Rajnish Kumar, chairman of State Bank of India (SBI), India’s largest bank. The government has imparted a huge boost to bank recapitalization with a proposed amount of Rs 2.11 lakh crore which is likely to kick start the credit cycle and facilitate private investments.
As part of overall recapitalization programme of Rs. 2.11 trillion for the PSBs, Govt. has budgeted a capital infusion of Rs 65,000 crore for PSBs during FY19, of which it has already infused Rs 22,900 crore in seven PSBs till November 2018.
The balance capital of Rs 42,100 crore is expected to be allocated equally into PCA and non-PCA banks.
Out of the 21 state-owned banks, 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders.
These are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.
Banking Secretary Rajiv Kumar said the funds infusion will help 4-5 banks come out of RBI’s Framework in 2018- 2019.
The funds will be utilized under four different heads:
1) To help banks meet regulatory capital norms.
2) Enable better performing PCA banks to get capital.
3) Infuse funds into non-PCA banks that are closer to the red line and
4) Give regulatory and growth capital to banks that are being amalgamated.
Prompt Corrective Action guidelines are a set of rules that put operational constraints on banks having bad loans. Recapitalization of PSU banks will make a positive impact as it will help banks meet their provisioning needs, regulatory capital norms and fund growth.
When some of the banks will come out of the PCA they might want to expand their business and will increase more branches in the urban and rural areas and that leads to the requirement of workforce. In this case there may have increased number of vacancies in the upcoming year.
so make your choice , boost your preparation and get ready to be selected for government job !!!!!!!!!