SBI, PNB in talks with K’taka govt for ‘amicable resolution’ of ban issue


PTI, Aug 15, 2024, 6:30 PM IST

Hit by the surprising decision by the Karnataka government to stop all transactions with them, State Bank of India and Punjab National Bank on Thursday said they are engaged with the state for an “amicable resolution” on the matter.

In the first official comments after the Karnataka government decision, the state-run lenders issued separate statements, saying the matter at the root of the problem is subjudice.

“As the matter is currently subjudice, we are unable to provide any specific comments at this time. However, we remain in ongoing discussions with the Government of Karnataka to resolve the issue amicably,” the SBI statement said.

SBI’s peer Punjab National Bank, also had a similar statement and pointed out that it will not be prudent to offer a specific comment on the matter.

“‘The Bank is committed for an amicable resolution of the matter and is in discussion with Government of Karnataka,” the PNB statement said.

Karnataka government ordered all its departments, boards, corporations, public sector units and universities to withdraw all their deposits and investments in the State Bank of India and the Punjab National Bank and stop any business with these institutions on August 12. The order was reported on August 14.

The order came after the denial to redeem Rs 12 crore deposited by the Karnataka Industrial Area Development Board (KIADB) following a scam involving bank employees.

A state government said the meeting with the bank officials did not yield any result and the matter is now sub judice.

Similarly, Rs 10 crore deposited by the Karnataka State Pollution Control Board (KSPCB) was not returned by the bank owing to a scam by the bank officials, the circular said.

The government also directed the government institutions to close their accounts in these two banks and submit the certified closure report and send details of deposits and investment reports in the prescribed format to the finance department by September 20, 2024.

The ban by one of the most prosperous states in the country comes at a time when the banking system is reeling under a “war for deposits” where challenges on liability accretion dominate all discussions.

A senior banking source on Wednesday said that the relationship is as important for the state as well, for it has borrowings from the lenders.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Tejasvi Surya hits out at Kharge, CMs of Cong-ruled states over poll promises

Farooq Abdullah seeks inquiry into spike in terror attacks in Valley since Omar’s swearing-in

Sabarimala pilgrims to get free insurance coverage of Rs five lakh

Delhi: Woman chops off her husband’s private parts

Man who threw stub near CRPF school among 50 questioned, not certain if he triggered blast: police

Train movement in Assam’s Lumding Badarpur hill section resumes

TTD chief says only Hindu staff in Tirumala, while Centre wants non-Muslims in Waqf Boards: Owaisi

Related Articles More

Tejasvi Surya hits out at Kharge, CMs of Cong-ruled states over poll promises

Kumaraswamy sheds tears during elections but vanishes when people are in tears: Shivakumar

CM Siddaramaiah promises efforts to include Kannada label on products made in Karnataka

“Chinnara Banna-2024” held successfully in Bantwal

Kharge getting personal on PM’s political observations on Karnataka surprising: BJP MP

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Tejasvi Surya hits out at Kharge, CMs of Cong-ruled states over poll promises

IPL Retention: Kohli drops hints of completing 20 years with RCB till 2027

Shah Rukh Khan turns 59, fans wait outside Mannat to catch superstar’s glimpse

Farooq Abdullah seeks inquiry into spike in terror attacks in Valley since Omar’s swearing-in

Sabarimala pilgrims to get free insurance coverage of Rs five lakh

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.