Lok Sabha Question No. 683 (UNSTARRED), answered on 2018-07-20
Subject: Losses suffered by Public Sector Banks
Ministry: FINANCE
Asked by: C. N. JAYADEVAN

## GOVERNMENT  OF INDIA MINISTRY  OF FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED  QUESTION  NO: 683

TO BE ANSWERED  ON THE 20 th  JULY,  2018/ASHADHA  29, 1940 (SAKA)

## QUESTION LOSSES SUFFERED BY PUBLIC SECTOR BANKS

## 683:  SHRI C.N. JAYADEVAN:

Will  the Minister  of FINANCE  be pleased to state:

- a) whether  the 21 Public  Sector  Banks have suffered highest  ever losses and biggest pile up of Gross Non-Performing  Assets (NPAs)  during  the year  2017-18; and
- b) if so, the bank-wise  details  of the profit/loss,  gross NPAs  and the provision  made for NPAs  during  the year  2017-18?

## ANSWER To be answered by THE MINISTER  OF STATE  IN THE  MINISTRY  OF FINANCE (SHRI SHIV PRATAP  SHUKLA)

(a)  and  (b):  Asset  Quality Review   (AQR)   carried   out  in  2015  for  clean  and  fully provisioned  bank  balance-sheets  revealed  high  incidence  of NPAs.  Expected losses on stressed loans,  not provided  for earlier  under  flexibility given  to restructured  loans,  were reclassified  as NPAs  and provided  for. PSBs initiated  cleaning  up by  recognising  NPAs and provided  for expected  losses. The gross NPA  ratio  for Public  Sector  Banks (PSBs) as a category  is 14.6% in the financial  year  (FY) 2017-18, as per Reserve  Bank of India (RBI) data. In the last 25 financial  years,  the gross NPA  ratio  for PSBs was highest  in FY 1993-94 at 24.8% and was also higher  in six other  financial  years.

Bank-wise  details  of gross NPAs  as of March  2018, and operating  profit,  provision  done and net profit/loss  in FY 2017-18, are at Annexure.

***

Annexure

## Details of gross Non-Performing  Assets, operating  profit,  provisioning  done and net profit/loss of PSBs

Amounts  in crore  Rs.

| S. No.   | Bank                    | As on 31.3.2018*   | FY 2017-18**     | FY 2017-18**      | FY 2017-18**                                         |
|----------|-------------------------|--------------------|------------------|-------------------|------------------------------------------------------|
| S. No.   | Bank                    | GrossNPA ratio(%)  | Operating profit | Provisioning done | Net profit (amounts witha minus sign are losses) *** |
| 1        | AllahabadBank           | 16.0               | 3,438            | 8,113             | -4,674                                               |
| 2        | AndhraBank              | 17.1               | 5,361            | 8,774             | -3,413                                               |
| 3        | Bank ofBaroda           | 12.3               | 12,006           | 14,437            | -2,432                                               |
| 4        | Bank ofIndia            | 16.6               | 7,139            | 13,183            | -6,044                                               |
| 5        | Bank ofMaharashtra      | 19.5               | 2,191            | 3,337             | -1,146                                               |
| 6        | CanaraBank              | 11.8               | 9,548            | 13,770            | -4,222                                               |
| 7        | CentralBankof India     | 21.5               | 2,733            | 7,838             | -5,105                                               |
| 8        | Corporation Bank        | 17.4               | 3,950            | 8,004             | -4,054                                               |
| 9        | DenaBank                | 22.0               | 1,171            | 3,094             | -1,923                                               |
| 10       | IDBI BankLimited        | 28.0               | 7,905            | 16,142            | -8,238                                               |
| 11       | IndianBank              | 7.4                | 5,001            | 3,742             | 1,259                                                |
| 12       | IndianOverseasBank      | 25.3               | 3,629            | 9,929             | -6,299                                               |
| 13       | OrientalBankof Commerce | 17.6               | 3,703            | 9,575             | -5,872                                               |
| 14       | Punjab&SindBank         | 11.2               | 1,145            | 1,889             | -744                                                 |
| 15       | PunjabNationalBank      | 18.4               | 10,294           | 22,577            | -12,283                                              |
| 16       | StateBank ofIndia       | 10.9               | 59,511           | 66,058            | -6,547                                               |
| 17       | SyndicateBank           | 11.5               | 3,864            | 7,087             | -3,223                                               |
| 18       | UCOBank                 | 24.6               | 1,334            | 5,771             | -4,436                                               |
| 19       | UnionBankof India       | 15.7               | 7,540            | 12,787            | -5,247                                               |
| 20       | UnitedBank ofIndia      | 24.1               | 1,025            | 2,479             | -1,454                                               |
| 21       | VijayaBank              | 6.3                | 3,098            | 2,371             | 727                                                  |

## Sources: *  RBI (global operations, provisional data for Mar-2018) ** Banks

***While  banks  have posted operating  profits,  their  net losses are  primarily on account  of continuing  ageing  provision  for NPAs  recognised  as a result of  AQR initiated  in 2015 and subsequent  transparent  recognition  by  banks.