GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
STARRED QUESTION NO. 80
TO BE ANSWERED ON THE 14TH DECEMBER 2018
AGRAHAYANA 23, 1940 (SAKA)
Losses of Public Sector Banks
80. SHRI A. ARUNMOZHITHEVAN:
Will the Minister of FINANCE be pleased to state:
- (a) whether the State owned banks saw their cumulative losses widen nearly three and a half times to Rs. 14, 716 crore in the July-September quarter of the current fiscal due to mounting bad loans;
- (b) if so, the details there of,bank-wise;
- (c) whether 21 Public Sector Banks had posted a net loss of Rs. 4,284 crore in the September quarter of 2017-18 and if so, the details there of;
- (d) whether India’s second largest Public Sector Bank suffered huge losses after the detection of a massivefraud to the tune of nearly Rs. 14,000 crore;and
ANSWER
The Finance Minister
(SHRI ARUN JAITLEY)
(a) to (e): A Statement is laid on the Table of the House.
STATEMENT FOR LOK SABHA STARRED QUESTION NO. 80 FOR 14TH DECEMBER 2018 REGARDING“ LOSSES OF PUBLIC SECTOR BANKS” BY SHRI A. ARUNMOZHI THE VAN, MEMBER OF PARLIAMENT.
(a) to (c): 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 flexibility given to restructured loans, were reclassified as NPAs and provided for. Public Sector Banks (PSBs) initiated cleaning up by recognizing 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during the fourth quarter of the financial year (FY) 2017-18, all such schemes for restructuring stressed loans were withdrawn.As a result, while PSBs posted operate in profits in the second quarter of the current and preceding financial years of Rs. 36,757 core and Rs. 48,177 crore respectively in the aggregate, many had net losses primarily on account of countenancing provision for NPA recognize das a result of AQR initiate in 2015 and subsequent transparent recognition by banks including under RBI’s Revised Resolution frame work for Stressed Assets issued on 12.2.2018. PSBs made aggregate provision for NPAs and other contingencies of Rs. 42,124 crore and Rs. 49,365 crore respectively in the said two quarters. Additionally, accuse of hardening of bond yields,in the second quarter of the current financial year, PSBs had mark-to-market losses on their investment portfolios of Rs. 9,350 crore as against aggregate mark-to-market losses of Rs. 3,096 crore in the second quarter of the previous financial year by many PSBs, with several other PSBs making profits. Bank-wise details of net profit of Public Sector Banks (PSBs) for the July-September quarter of the current financial year (2018-19) and the previous financial year(2017-18) are at Annexure.
(d) and (e): Punjab National Bank, the second largest PSB, posted an operating profit of Rs 7,034 crore and had made a provision of Rs. 11,262 crore on account of ageing provisions for NPA sand other contingencies (primarily on account of continuingageing provision for NPAs due to transparent recognition of stressed assets) and Rs. 1,245 for mark-to-market losses, thus posting a net loss of Rs. 5,472 crore for the half-year ended September 2018.
Annexure-
Lok Sabha Starred Question No. 80 for 14.12.2018 regarding “losses of Public Sector Banks” Details of operating profit, provisioning and net profit
| Banks | Q2 F Y’2017-18 |
Q2 F Y’2018-19 |
||||||
Opera
ting profit |
MTM
Provi
sions |
Provisions
for NPA & contingenci es (excl.
MTM
Provisions)
|
Net profit |
Opera ting profit |
MTM
Provi
sions |
Provisions for NPA & cntingencies (exc l.MTM Provisions) |
Net profit |
|
| AllahabadBank | 1,223 |
76
|
1,077
|
70
|
534
|
418
|
1,939 | -1,823 |
| Andhra Bank | 1,295 |
89
|
1,591
|
-385 | 1,298 |
266
|
1,465 | -434 |
| Bank of Baroda | 3,042 |
0
|
2,686
|
355
|
3,082 |
261
|
2,395 | 425 |
| Bank of India | 2,233 |
96
|
1,958
|
179
|
1,647 |
165
|
2,638 | -1,156 |
| Bank of Maharashtr |
692
|
13
|
702
|
-23
|
794
|
232
|
535
|
27
|
| CanaraBank | 2,480 |
259
|
1,961
|
260
|
2,327 |
333
|
1,695 | 300 |
| CentralBank of India |
869
|
1,342 |
1,620
|
-750 |
509
|
675
|
758
|
-924 |
| CorporationBank | 1,163 |
117
|
2,081
|
-1,035 |
899
|
39
|
757
|
103 |
| Dena Bank |
397
|
35
|
547
|
-185 |
442
|
55
|
804
|
-417 |
| IDBI Bank Limited | 2,803 |
107
|
2,894
|
-198 |
850
|
963
|
3,490 | -3,602 |
| Indian Bank | 1,376 |
39
|
885
|
452
|
1,191 |
326
|
715
|
150 |
| Indian Overseas Bank |
1,039 |
18
|
2,243
|
-1,223 |
1,304 |
243
|
1,548 |
-487 |
| OrientalBank of Commerce |
1,551 |
167
|
3,134
|
-1,750 |
972
|
272
|
598
|
102 |
| PunjabNational Bank |
3,279 |
84
|
2,634
|
561
|
2,839 |
1,254 |
6,118 |
-4,532 |
| Punjaband Sind Bank |
359
|
3
|
342
|
14
|
351
|
133
|
327
|
-109 |
| SyndicateBank | 1,174 |
250
|
819
|
105
|
570
|
1,239 |
874
|
-1,543 |
| UCO Bank |
244
|
113
|
754
|
-623 |
506
|
412
|
1,231 | -1,136 |
| UnionBank | 1,939 |
143
|
3,327
|
-1,531 | 1,772 |
196
|
1,437 | 139 |
| UnitedBank of India |
286
|
144
|
487
|
-345 |
206
|
597
|
492
|
-883 |
| VijayaBank |
734
|
0
|
548
|
185
|
759
|
22
|
597
|
140 |
| State Bank of India | 19,999 |
0
|
18,418 | 1,582 | 13,905 | 1,249 | 11,711 | 945 |
Annexure-II
Lok Sabha Starred Question No. 80 for 14.12.2018 regarding “Losses of Public Sector Banks” Details of operating profit, provisioning and net profit for Punjab National Bank
|
Banks
|
Q2
F Y’2017-18 |
|||
Oper a tin g pr o fit |
MTM Losses |
P
r o vi s i o n s f o r NPA
& contingencies (excl. MTM
Losses
) |
Net profit |
|
| Q4 F Y’2017-18 |
-447
|
625
|
12,325
|
-13,417 |
| Q1 FY ’2018-19 |
4,195
|
9
|
5,126
|
-940
|
| Q2 FY’2018-19 |
2,839
|
1,254 |
6,118
|
-4,532
|