Lok Sabha Question No. 2296 (UNSTARRED), answered on 2016-07-29
Subject: Bank Profit
Ministry: FINANCE
Asked by: G. HARI, ANTO  ANTONY

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

## LOK SABHA UNSTARRED QUESTION NO.2296

TO BE ANSWERED ON THE 29 th  July, 2016/ Shravana 7, 1938 (SAKA)

## Bank Profit QUESTION

## 2296. SHRI G. HARI: SHRI ANTO ANTONY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the cumulative loss of 20 public sector banks stands at Rs. 14,283 crore in fourth quarter, if so, the details thereof, bank-wise; whether the losses declared due to stressed/bad loans and written off by the banks during
- (b) the previous year, if so, the details thereof; and
- (c) the steps taken/being taken by the Government to deal with stressed assets in this regard?

## ANSWER

## The Minister of State in the Ministry of Finance

(SHRI SANTOSH KUMAR GANGWAR)

(a):  The details are given at Annexure. (b):   The main reason for the losses to PSBs inter-alia include Asset Quality Review (AQR) exercise initiative  by  Reserve Bank of India (RBI) during FY16, due to which banks had to suddenly make provisions for accounts categorized as non-performing asset (NPA) under AQR exercise. (c):  The  Government  has  taken  specific  measures  to  address  issues  in  sectors  such  as Infrastructure  (Power,  Roads  etc.),  Steel  and  Textiles  where  incidence  of  NPAs  is  high.  The government has also approved establishment of six (6) new Debt Recovery Tribunals (DRTs), to speed up the recovery of bad loans of the banking sector, in addition to existing thirty three. RBI has also  undertaken  steps  which  include  (i)  Formations  of  Joint  Lenders'  Forum  (JLF)  for  revitalizing stressed assets in the system, (ii) Flexible Structuring for long term project loans to Infrastructure and  Core  Industries,  and  (iii)  Strategic  Debt  Restructuring  (SDR)  scheme.  (iv)  Scheme  for Sustainable Structuring of Stressed Assets. The Government has recently issued advisory to banks to  take  action  against  guarantors  in  event  of  default  by  borrower  under  relevant  section  of SARFAESI Act, Indian Contract Act & RDDB&FI Act, since in the event of default; the liability of the

- guarantor is co-extensive with the borrower.

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## Lok Sabha Unstarred Question No. 2296 reg. 'Bank Profit' for 29.07.2016.

## Net Profit/Losses of PSBs in Fourth Quarter of 2016 (Rs. In crore)

| S.No.   | BANK                           |   Jan-Mar 2016 |
|---------|--------------------------------|----------------|
| 1       | Allahabad Bank                 |        -580.87 |
| 2       | Andhra Bank                    |          50    |
| 3       | Bank of Baroda                 |       -3230.12 |
| 4       | Bank of India                  |       -3587    |
| 5       | Bank of Maharashtra            |        -119.4  |
| 6       | Canara Bank                    |       -3905.49 |
| 7       | Central Bank of India          |        -897    |
| 8       | Corporation Bank               |        -510.97 |
| 9       | Dena Bank                      |        -326.39 |
| 10      | IDBI Bank                      |       -1735.8  |
| 11      | Indian Bank                    |          84.51 |
| 12      | Indian Overseas Bank           |        -936    |
| 13      | Oriental Bank of Commerce      |          21.62 |
| 14      | Punjab National Bank           |       -5367.14 |
| 15      | Punjab & Sind Bank             |          98.13 |
| 16      | Syndicate bank                 |       -2158.16 |
| 17      | UCO Bank                       |       -1715.15 |
| 18      | Union Bank of India            |          97    |
| 19      | United Bank of India           |        -413.03 |
| 20      | Vijaya Bank                    |          71.31 |
| 21      | Bhartiya Mahila Bank           |         -17.5  |
| 22      | State Bank of India            |        1264    |
| 23      | State Bank of Bikaner & Jaipur |         193.22 |
| 24      | State Bank of Hyderabad        |         253.23 |
| 25      | State Bank of Mysore           |         105    |
| 26      | State Bank of Patiala          |        -505    |
| 27      | State Bank of Travancore       |          62.14 |
|         | PSBs                           |      -23704.9  |

Source: Public Sector Banks.

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