Lok Sabha Question No. 4112 (UNSTARRED), answered on 2022-03-28
Subject: Performance of PSBs
Ministry: FINANCE
Asked by: Pratima Mondal

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

## LOK SABHA UNSTARRED QUESTION NO. 4112

To be answered on the 28 th March 2022/ Chaitra 7, 1944 (Saka)

## Performance of PSBs

## 4112. SHRIMATI PRATIMA MONDAL:

Will the Minister of FINANCE be pleased to state:

- (a) the details of Public Sector Banks (PSBs) earning profit/incurring losses during the last three years, bank, year and State/UT-wise;
- (b) whether the loss incurred by PSBs is due to increase in the incidents of frauds in the said banks;
- (c) if  so,  the  details  thereof  along  with  the  number  of  fraud  cases  detected and  the  action  taken against the officials/banks during the said period, bank and State-wise; and
- (d) whether the Government has developed any mechanism to detect fraud in banks before it is reported by the customers of the banks, if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (DR. BHAGWAT KARAD)

(a) to (d): As per inputs received from Reserve Bank of India (RBI), State-/ Union Territories-wise data is not maintained by it. However, bank-wise details of operating profit and net profit/loss of Public Sector Banks (PSBs), for FY 2018-19 to FY 2020-21 and for the first nine-months of FY 2021-22 are at Annexure-I.

As per RBI data, aggregate gross advances of PSBs increased from Rs. 18,19,074 crore as on 31.3.2008 to Rs. 52,15,920 crore as on 31.3.2014.  As per RBI inputs, aggressive lending practices during this period along with wilful default / loan frauds / corruption in some cases, economic slowdown etc. were observed to be primary reasons for the spurt in the stressed assets. Asset Quality Review (AQR) initiated in 2015 for clean and fully provisioned bank balance-sheets revealed high incidence of non-performing assets (NPAs). As a result of  AQR and subsequent transparent recognition by banks, stressed accounts were reclassified as NPAs and expected losses on stressed loans, not provided for earlier under flexibility given to restructured loans, were provided for. Further, all such schemes for restructuring stressed loans were withdrawn in the financial year (FY) 2017-18. Primarily as a result of  transparent recognition of stressed  assets  as  NPAs,  as  per  RBI  data  on  global  operations,  gross  NPAs  of   PSBs  rose  from  Rs. 2,16,739 crore as on 31.3.2014 to Rs. 8,95,601 crore as on 31.3.2018, and as a result of  Government's strategy  of   recognition,  resolution,  recapitalisation  and  reforms,  have  since  declined  to Rs.  5,59,081 crore as on 31.12.2021.

Throughout this period, PSBs continued to post aggregate operating profits of Rs. 1,37,151 crore, Rs. 1,58,994 crore, Rs. 1,55,603 crore, Rs. 1,49,819 crore, Rs. 1,74,640 crore, 1,97,376 crore, 1,47,686 crore, in the financial year 2015-16, 2016-17, 2017-18, 2018-19, 2019-20, 2020-21 and the first nine-months of  2021-22,  respectively.  However,  primarily  due  to  provisions  on  account  of   NPAs,  some  PSBs reported net losses. Further, PSBs have now returned to profitability, with all PSBs reporting net profit in the first nine-months of  FY 2021-22.

Bank-wise and state-wise details of  frauds on the basis of  occurrence are at Annexure-II and AnnexureIII, respectively.

Further, RBI has issued Master Directions for classification and reporting of frauds by commercial banks and select financial  institutions  (FIs),  to  direct  the  focus  of   banks  on  the  aspects  relating  to prevention, early detection, prompt reporting to RBI and the investigating agencies, and timely initiation of the staff  accountability proceedings. Also, RBI has provided an illustrative list of  some early warning signals (EWS) to detect fraudulent activity in an account.

In addition to this, several measures have also been taken to help deter fraudsters/defaulters include, inter-alia , the following -

- (1) An  online  searchable  database  of   frauds  reported  by  banks,  in  the  form  of   Central  Fraud Registry, has been set up to enable timely identification, control and mitigation of  fraud risk and carrying out due diligence during the credit sanction process.
- (2) Governments framework for large value frauds in PSBs mandates:
3. (i) Examination be initiated for wilful default immediately upon reporting fraud to RBI;
4. (ii) Report on the borrower be sought from the Central Economic Intelligence Bureau in case an account turns NPA.
- (3) Fugitive Economic Offenders Act, 2018 has been enacted to provide for attachment of property of a fugitive economic offender, confiscation of such offender's property and disentitlement of the offender from defending any civil claim.
- (4) PSBs have been advised to -
7. (i) obtain certified copy of the passport of the promoters/directors and other authorised signatories of  companies availing loan facilities of  more than Rs. 50 crore;
8. (ii) decide on publishing photographs of wilful defaulters, in terms of the instructions of RBI and as per their Board-approved policy; and
9. (iii) strictly ensure rotational transfer of  officials/employees.
- (5) Heads of PSBs have been empowered to issue requests for issue of Look-Out Circulars.

***

## Lok Sabha unstarred question no. 4112, to be answered on 28 th  March 2022

## Bank-wise details of net profit/loss of Public Sector Banks (PSBs)

| Bank/Bank Group Name      | Operating Profit (April to Date)   | Operating Profit (April to Date)   | Operating Profit (April to Date)   | Operating Profit (April to Date)   | Net Profit/Loss (April to Date)   | Net Profit/Loss (April to Date)   | Net Profit/Loss (April to Date)   | Net Profit/Loss (April to Date)   |
|---------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
| Bank/Bank Group Name      | 31.3.19                            | 31.3.20                            | 31.3.21                            | 31.12.21                           | 31.3.19                           | 31.3.20                           | 31.3.21                           | 31.12.21                          |
| Allahabad Bank            | 2,767                              | 3,089                              | *                                  | *                                  | -8,334                            | -5,396                            | *                                 | *                                 |
| Andhra Bank               | 5,039                              | 5,185                              | *                                  | *                                  | -2,786                            | -1,250                            | *                                 | *                                 |
| Bank of Baroda            | 13,487                             | 19,691                             | 20,630                             | 16,754                             | 434                               | 546                               | 829                               | 5,494                             |
| Bank of India             | 8,092                              | 11,519                             | 10,872                             | 7,523                              | -5,547                            | -2,957                            | 2,160                             | 2,798                             |
| Bank of Maharashtra       | 2,198                              | 2,847                              | 3,958                              | 3,700                              | -4,784                            | 389                               | 550                               | 796                               |
| Canara Bank               | 10,591                             | 9,517                              | 20,009                             | 16,887                             | 347                               | -2,236                            | 2,558                             | 4,012                             |
| Central Bank of India     | 3,126                              | 4,344                              | 4,630                              | 3,826                              | -5,641                            | -1,121                            | -888                              | 735                               |
| Corporation Bank          | 3,894                              | 3,802                              | *                                  | *                                  | -6,333                            | -2,392                            | *                                 | *                                 |
| Dena Bank                 | 198                                | *                                  | *                                  | *                                  | -6,339                            | *                                 | *                                 | *                                 |
| Indian Bank               | 4,881                              | 6,498                              | 11,396                             | 9,979                              | 322                               | 753                               | 3,005                             | 2,961                             |
| Indian Overseas Bank      | 5,034                              | 3,534                              | 5,896                              | 4,149                              | -3,766                            | -8,527                            | 834                               | 1,157                             |
| Oriental Bank of Commerce | 3,754                              | 2,985                              | *                                  | *                                  | 55                                | -2,252                            | *                                 | *                                 |
| Punjab and Sind Bank      | 1,397                              | 1,097                              | 771                                | 1,013                              | -543                              | -991                              | -2,733                            | 693                               |
| Punjab National Bank      | 12,995                             | 14,739                             | 22,980                             | 15,497                             | -9,975                            | 336                               | 2,022                             | 3,255                             |
| Syndicate Bank            | 2,819                              | 3,473                              | *                                  | *                                  | -2,588                            | -3,602                            | *                                 | *                                 |
| UCO Bank                  | 2,760                              | 4,836                              | 5,421                              | 3,848                              | -4,321                            | -2,437                            | 167                               | 618                               |
| Union Bank of India       | 7,521                              | 9,181                              | 19,259                             | 16,353                             | -2,947                            | -2,898                            | 2,906                             | 3,793                             |
| United Bank of India      | 1,412                              | 171                                | *                                  | *                                  | -2,316                            | -6,395                            | *                                 | *                                 |
| Vijaya Bank               | 2,419                              | *                                  | *                                  | *                                  | -2,434                            | *                                 | *                                 | *                                 |
| State Bank of India       | 55,436                             | 68,133                             | 71,554                             | 48,157                             | 862                               | 14,488                            | 20,410                            | 22,562                            |

Source: Reserve Bank of India

## Lok Sabha unstarred question no. 4112, to be answered on 28 th  March 2022

## Bank-wise details of frauds on the basis of occurrence during the period from FY 2018-19 to FY 2020-21

| Bank Name                 | Number of frauds based on date of occurrence   |
|---------------------------|------------------------------------------------|
| Allahabad Bank            | 83                                             |
| Andhra Bank               | 41                                             |
| Bank of Baroda            | 378                                            |
| Bank of India             | 274                                            |
| Bank of Maharashtra       | 435                                            |
| Canara Bank               | 259                                            |
| Central Bank of India     | 2,299                                          |
| Corporation Bank          | 136                                            |
| Dena Bank                 | 3                                              |
| IDBI Bank Limited         | 747                                            |
| Indian Bank               | 517                                            |
| Indian Overseas Bank      | 552                                            |
| Oriental Bank of Commerce | 349                                            |
| Punjab And Sind Bank      | 211                                            |
| Punjab National Bank      | 1,040                                          |
| State Bank of India       | 14,431                                         |
| Syndicate Bank            | 278                                            |
| UCO Bank                  | 487                                            |
| Union Bank of India       | 1,184                                          |
| United Bank of India      | 117                                            |
| Vijaya Bank               | 2                                              |

Source: Reserve Bank of India

## Lok Sabha unstarred question no. 4112, to be answered on 28 th  March 2022

## State-wise details of frauds on the basis of occurrence during the period from FY 2018-19 to FY 2020-21

| Name of the state                        |   Number of Frauds |
|------------------------------------------|--------------------|
| Andaman & Nicobar Islands                |                 32 |
| Andhra Pradesh                           |               1995 |
| Arunachal Pradesh                        |                108 |
| Assam                                    |               1258 |
| Bihar                                    |               2241 |
| Chandigarh                               |                775 |
| Chhattisgarh                             |                877 |
| Dadra and Nagar Haveli and Daman and Diu |                151 |
| Goa                                      |                610 |
| Gujarat                                  |               9900 |
| Haryana                                  |              23208 |
| Himachal Pradesh                         |                623 |
| Jammu & Kashmir                          |                306 |
| Jharkhand                                |                926 |
| Karnataka                                |              11878 |
| Kerala                                   |               2539 |
| Ladakh                                   |                 16 |
| Madhya Pradesh                           |               2984 |
| Maharashtra                              |              83032 |
| Manipur                                  |                 50 |
| Meghalaya                                |                 65 |
| Mizoram                                  |                 24 |
| Nagaland                                 |                 76 |
| Delhi                                    |              22343 |
| Odisha                                   |               1449 |
| Puducherry                               |                106 |
| Punjab                                   |               3411 |
| Rajasthan                                |               3962 |
| Sikkim                                   |                 54 |
| Tamil Nadu                               |              20328 |
| Telangana                                |               6386 |
| Tripura                                  |                211 |
| Uttar Pradesh                            |              14841 |
| Uttarakhand                              |                670 |
| West Bengal                              |               4580 |

Source: Reserve Bank of India