GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
STARRED QUESTION NO. 250
TO BE ANSWERED ON THE 28TH DECEMBER 2018/
PAUSHA7, 1940(SAKA)
Decline in Profit of Banks
250. SHRI RAM TAHAL CHOUDHARY
Will the Minister of FINANCE be pleased to state:
- (a) whether several banks have reported decline in profit due to Non Performin Assets (NPAs);
- (b) if so, the details there of;
- (c) the extent of decline in profit of the nationalised banks due to NPAs, bank-wise and
- (d) the number of officers held responsible by the Government in this regard along with the details of the action taken against them?
ANSWER
The Finance Minister
(SHRI ARUN JAITLEY)
(a) to (d): A statement is laid on the Table of the House.
STATEMENT FOR LOK SABHA STARRED QUESTION NO. 250 FOR 28TH DECEMBER 2018 REGARDING “DECLINE IN PROFIT OF BANKS” BY SHRI RAM TAHAL CHOUDHARY, MEMBER OF PARLIAMENT
(a) to (d): Asset Quality Review (AQR) carried out in 2015 for clean and fully provisioned bank balance-sheets revealed high incidence of non-performing assets (NPAs). Expected losses on stressed loans, not provided for earlier under flexible given to restructured loans, were reclassified as NPAs and provided for. Nationalise Banks initiated cleaning up by recognising NPAs and provided for expected losses. Further, during the fourth quarter of the financial year(FY) 2017-18, all such schemes for restructuring stressed loans were withdrawn.As a result, while Nationalised banks posted aggregate operating profits during the last Half Year (H1 FY19) (1.4.2018 to 30.9.2018) of Rs. 47,221 crores,as compared to Rs 49,466 crore for the same period last year (H1 FY18) their net profits declined primarily on account of continuing ageing provision for NPAs recognised as a result of AQR initiatedin 2015 and subsequen transparent recognit on by banks including under RBI’s Revised Resolution framewor for Stressed Assets issued on 12.2.2018. Nationalised Banks made aggregate provision for NPAs and other contingencies of Rs. 57,015 crore during H1 FY19. Additional because of hardening of bond yields,these banks had aggregate mark-to-market losses on their investment portfolios of Rs.10,400 crore during the same period. Details of profit and loss of the nationalised banks during the last H1 FY19 are at Annex.
As per the inputs received from Nationalised Banks, in FY 2017-18, 6,049 officers have been held responsible on account of staff delinquencyin NPA accounts and depending on the gravity of the lapses, Minor Penalty/Major Penalty have been imposed against erring officials including, Inter-alla Dismissal/ Removal from Services/ Compulsor Retirement from Services, Reduction to lower grade, Reduction lower stage in time scale of pay etc. In all the cases, depending on the amount involved, CBI/ Police complaints have been lodged.
Annex
Lok Sabha Starred Question No. 250, for 28.12.2018, regarding “Decline in Profit of Banks”
Details of profit and loss of Public Sector Banks
Amount in crore Rs.
| Operating Profit |
Prov. For NPA Net Profit |
|||||
|
HY
ending
Sep ’17 |
HY
ending
Sep ’18 |
HY
ending
Sep ’17 |
HY ending Sep ’18 |
HY
ending
Sep ’17 |
HY ending Sep ’18 |
|
| Allahabad bank | 2,393 | 1,364 | 3,156 | 4,582 |
99
|
-3,767 |
| Andhra Bank | 2,670 | 2,512 | 2,795 | 2,543 | -345 | -974 |
| Bank of Baroda | 5,690 | 6,088 | 3,919 | 4,233 | 826 | 954 |
| Bank of India | 4,612 | 3,516 | 4,023 | 5,087 | 267 | -1,061 |
| Bank of Maharashtra | 1,225 | 1,265 | 1,993 | 2,452 | -435 | -1,092 |
| Canara Bank | 4,952 | 5,260 | 4,220 | 4,869 | 512 | 581 |
| Central Bank of India | 1,320 | 892 | 2,820 | 879 | -1,327 | -2,446 |
| Corporation Bank | 2,079 | 2,430 | 4,046 | 2,237 | -975 | 188 |
| Dena Bank | 686 | 702 | 783 | 787 | -318 | -1,138 |
| Indian Bank | 2,628 | 2,489 | 1,315 | -719 | 824 | 359 |
| Indian Overseas Bank | 1,815 | 2,436 | 3,864 | 3,938 | -1,722 | -1,407 |
| Oriental Bank of Commerce | 2,560 | 1,697 | 4,738 | 2,055 | -2,236 | -291 |
| Punjab National Bank | 664 | 759 | 537 | 1,196 |
39
|
-507 |
| Punjab & Sind Bank | 6,496 | 7,034 | 5,206 | 9,686 | 904 | -5,472 |
| Syndicate Bank | 2,154 | 1,129 | 2,120 | 3,397 | -158 | -2,824 |
| UCO Bank | 853 | 1,688 | 2,528 | 3,449 | -1,286 | -1,770 |
| Union Bank of India | 4,472 | 3,861 | 6,202 | 3,513 | -1,414 | 269 |
| United Bank | 710 | 489 | 1,067 | 1,795 | -556 | -1,272 |
| Vijaya Bank | 1,487 | 1,611 | 861 | 1,036 | 440 | 284 |
| All Nationalised Banks | 49,466 | 47,221 | 56,193 | 57,015 | -6,861 | -21,388 |