The Karnataka government severed ties with SBI-PNB, banning transactions with the largest banks

SBI-BNP: Karnataka's Congress government severed its ties with two of the country's largest banks, SBI (State Bank of India) and PNB (Punjab National Bank). He has completely banned transactions with these two banks. SBI-BNP said in a statement that they are deeply hurt by the Karnataka government's decision to stop all transactions with them. They are holding talks with the state government to find a smooth solution to this problem. Banks talk to government In the first official comment since the Karnataka government's decision, public sector banks separately issued statements saying the root cause of the problem is under consideration. The matter is still under consideration, SBI said in a statement. So we cannot make any specific comment at this time. However, we are continuing to negotiate with the Karnataka government to resolve this issue amicably. On the other hand, Punjab National Bank also made a similar statement and said that it would not be wise to make any specific comment on the matter. PNB's statement said that the bank is committed to finding an amicable solution to the issue and is negotiating with the government. The Karnataka government on August 12 asked all departments, boards, corporations, public sector units and universities to withdraw their deposits and investments in State Bank of India and Punjab National Bank following fraud by bank employees. And the investments of these companies have been ordered to cease any kind of business. The order was issued on August 14. The order comes after the Karnataka Industrial Area Development Board (KIATP) refused to refund Rs 12 crore deposited following fraud by bank employees. Also Read: In Adani Group case, plea filed with SEBI, Karnataka govt circular says bank does not return money deposited by state pollution control board As negotiations with bank officials yielded no result, the case is pending in court. The bank did not return Rs 10 crore deposited by the Karnataka State Pollution Control Board (KSPCB) due to malpractice by bank officials, the circular said. The government directed the state-owned enterprises in these two banks to close their accounts, submit certified closure reports and send deposit and investment statements in the prescribed format to the finance department by September 20, 2024. Also Read: After PM Kisan, new gift for farmers, Shivraj Singh Chauhan will talk to Kisan