Lok Sabha Question No. 1660 (UNSTARRED), answered on 2018-07-27
Subject: Capital Infusion in PSB
Ministry: FINANCE
Asked by: PONNUSAMY VENUGOPAL

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1660

## TO BE ANSWERED ON THE 27 TH  JULY 2018/ SHRAVANA  5, 1940  (SAKA) Capital Infusion  in PSB

## 1660.   DR.  P. VENUGOPAL:

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether  the Public  Sector  Banks (PSBs) are likely  to record  losses of Rs. 50,000 crore  in fourth  quarter  of Financial  Year  2018;
- (b) if so, the details  thereof,  Bank-wise;
- (c) whether   this  is  likely  to  force  the  Government   to  pump   in  more   capital than planned  earlier;  and
- (d) if so, the details  thereof?

## ANSWER

## Minister of State in the Ministry  of Finance (SHRI SHIV PRATAP  SHUKLA)

- (a) and (b): Bank-wise  details  of net profit/loss  in Financial  Year  2017-18 are at Annex.
- (c)  and  (d):  Government,   in  October   2017,  announced   decision   to  recapitalise   Public Sector Banks  over the financial years (FYs) 2017-18  and 2018-19. This entails mobilisation  of capital  to the tune  of about  Rs. 2,11,000 crore,  through  capital infusion by the Government  amounting  to Rs. 1,53,139 crore,  through  a mix  of special  securities ('recapitalisation bonds') and budgetary  support,  and the balance  through  capital  raising from the market.  Pursuant  to this,  Rs. 88,139 crore  were  infused  in the second half of FY 2017-18. Budget provision  of Rs. 65,000 crore  has been made for this purpose  in Union Budget 2018-19, and Rs. 11,337 crore  has been infused in banks  so far. Further,  banks have mobilised  capital  from  markets  to the tune  of Rs. 11,948 crore  through  issuance  of fresh equity  in dilution  of Government's  shareholding  in the banks  and through  sale of non-core assets.

## Lok  Sabha Unstarred  Question  No. 1660,  for  27.7.2018 Details of net profit/loss of PSBs in FY 2017-18

|   S. No. | Bank                    | Net profit (amounts witha minus sign are losses) *   |
|----------|-------------------------|------------------------------------------------------|
|        1 | AllahabadBank           | -4,674                                               |
|        2 | AndhraBank              | -3,413                                               |
|        3 | Bank ofBaroda           | -2,432                                               |
|        4 | Bank ofIndia            | -6,044                                               |
|        5 | Bank ofMaharashtra      | -1,146                                               |
|        6 | CanaraBank              | -4,222                                               |
|        7 | CentralBankof India     | -5,105                                               |
|        8 | Corporation Bank        | -4,054                                               |
|        9 | DenaBank                | -1,923                                               |
|       10 | IDBI BankLimited        | -8,238                                               |
|       11 | IndianBank              | 1,259                                                |
|       12 | IndianOverseasBank      | -6,299                                               |
|       13 | OrientalBankof Commerce | -5,872                                               |
|       14 | Punjab&SindBank         | -744                                                 |
|       15 | PunjabNationalBank      | -12,283                                              |
|       16 | StateBank ofIndia       | -6,547                                               |
|       17 | SyndicateBank           | -3,223                                               |
|       18 | UCOBank                 | -4,436                                               |
|       19 | UnionBankof India       | -5,247                                               |
|       20 | UnitedBank ofIndia      | -1,454                                               |
|       21 | VijayaBank              | 727                                                  |

## Sources: Reserve Bank of India

*  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.

Amount in crore  Rs.