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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Kerala polls: ‘People rejected 10 years of misrule’, says AICC gen secy
Thiruvananthapuram (PTI): AICC General Secretary K C Venugopal on Monday said the Congress-led UDF’s sweeping victory in the Kerala Assembly polls was a clear verdict against the “arrogance”, corruption, and nepotism of the CPI(M)-led LDF government headed by CM Pinarayi Vijayan.
Addressing a press conference as counting of votes for all 140 Assembly constituencies neared completion, Venugopal said the outcome reflected public anger against what he termed “10 years of misrule” by the Left government.
He claimed that Vijayan’s victory in his home constituency, Dharmadam, was “only technical”, alleging that the CM trailed the UDF candidate in the initial rounds of counting and failed to secure a majority in his own village.
“He just escaped. He suffered a setback even in his home turf. He was the only person who did not realise the people’s mood in this election,” Venugopal said.
Alleging that the CPI(M) and the LDF had resorted to “communal and opportunistic politics”, he further claimed that the ruling front had entered into a “secret understanding” with the BJP in a bid to retain power for a third consecutive term.
He said that when a government driven by power and arrogance attempts to align with anyone to stay in office, even its own cadre turns against it.
Referring to the results, Venugopal said that while the UDF expected rebel CPI(M) leaders, including K Kunhikrishnan in Payyannur, to impact the vote share, their victories came as a surprise.
Describing the UDF’s performance as a “historic victory”, he attributed it to coordinated teamwork, grassroots mobilisation, and the dedication of party workers, adding that the alliance accepted the mandate “with humility”.
Venugopal also credited Rahul Gandhi’s campaign guarantees, calling them a “trump card” that helped voters focus on real issues and reject what he described as the LDF’s “false narratives”.
He claimed that the Congress witnessed one of its lowest levels of rebellion in this election, which contributed to the alliance’s strong performance.
The senior Congress leader further alleged that the BJP managed to win two seats with the help of the CPI(M), and asserted that forces attempting to divide society on communal lines should “learn a lesson” from Kerala’s verdict.
“This is the real Kerala story,” he said.
On the question of the next Chief Minister, Venugopal said the party leadership would decide at the earliest after due consultations.
The counting of votes began on Monday morning for all 140 Assembly constituencies in Kerala, where the Congress-led UDF secured a decisive majority, defeating the CPI(M)-led LDF, which was seeking an unprecedented third consecutive term in office.
Congress MP Rahul Gandhi (@RahulGandhi) posts, "Thank you to my brothers and sisters in Keralam for a truly decisive mandate. Congratulations to every UDF leader and worker for a hard-fought, well-run campaign. As I said before, Keralam has the talent, Keralam has the potential… pic.twitter.com/6T4IZbEmp4
— Press Trust of India (@PTI_News) May 4, 2026
