SBI, PNB in talks with K’taka govt for ‘amicable resolution’ of ban issue
Mumbai, Aug 15: 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.
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4 workers die after being buried under coal slurry in Jharkhand's Dhanbad
Dhanbad (Jharkhand) (PTI): At least four workers died after being buried under coal slurry in Jharkhand's Dhanbad district on Saturday, a police official said.
The incident took place at Moonidih coal washery in the command area of Bharat Coking Coal Limited (BCCL).
"Bodies of all four workers were dug out of debris during a rescue operation," Putki police station in-charge Waqar Hussain told PTI.
The incident took place when coal slurry was being loaded into trucks by workers, during which a large chunk of slurry fell and trapped several workers underneath, officials said.
The deceased have been identified as Manik Bauri, Dinesh Bauri, Deepak Bauri, and Hemlal Gope.
Meanwhile, the family members of the deceased and local villagers placed the bodies in front of the washery gate and began a protest.
They demanded compensation, jobs for dependents and action against those responsible for the incident.
Police and administration officials are trying to pacify the protesters, an official said.
