Lok Sabha Question No. 969 (UNSTARRED), answered on 2015-12-04
Subject: Losses Incurred by Banks
Ministry: FINANCE
Asked by: RAJU ALIAS DEVAPPA ANNA SHETTI

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

## LOK SABHA UNSTARRED QUESTION NO . †969

TO BE ANSWERED ON THE 4 th December,2015/Agrahayana 13,1937 (SAKA)

## LOSSES INCURRED BY BANKS

## QUESTION

## 969. SHRI RAJU SHETTY

:

Will the Minister of FINANCE be pleased to state:

- (a) whether losses of Cooperative, Public and Private Sector Banks have increased during the last three years and the current year;
- (c) whether  some  of  the  banks  have  failed  to  return  the  investors  money  during  the  said period;
- (b) if so, the details thereof, State, bank and year-wise;
- (d) If so, the details thereof, Bank and State-wise; and
- (e) The  remedial  steps  taken/being  taken  by  the  Government  to  protect  the  interest  of customers in this regard?

## ANSWER

## The Minister of State in the Ministry of Finance (SHRI JAYANT SINHA)

(a) & (b): Bank-wise data for Public Sector, Private Sector, foreign and state/district cooperative banks on net profit for last three years are given in Annex-I . It is observed that during the last two financial years ended Mar-14 and Mar-15, net profit has decreased for PSBs. The losses of all loss  making  State  Cooperative  Banks  (StCBs)  put  together  increased  during  2013-14,  but decreased  during  the  year  2014-15  while  overall  net  loss  for  all  District  Central  Cooperative Banks(DCCBs) put together increased during 2014-15 vis-à-vis 2013-14. (c) & (d): 23 Unlicensed Central Cooperative Banks (CCBs) in 4 States have been facing severe liquidity issues and were finding it difficult to honour depositors' claims. Complaints were received against  Basti  DCCB  and  Sultanpur  DCCB  in  Uttar  Pradesh  regarding  non-honouring  of depositors'  claims.  A  statement  containing  the  names  of  23  unlicensed  CCBs  is  enclosed  as Annex- II . Gajanan  Nagarik  Sahakari  Bank  has  reported  non-payment  of  deposit  by  Beed  DCCB  in Maharashtra.  Beed DCCB has since reported having paid part amount and the balance is being repaid in instalments. (e):  With  a  view  to  protect  the  interests  of  depositors  in  the  area  of  operation  of  these  23 unlicensed DCCBs, GoI had announced a Special Revival Package for the 23 unlicensed DCCBs operating in 4 States (16 in UP, 3 in Maharashtra, 3 in J&K and one in West Bengal) amounting to  Rs.2,375.42  crore,  in  November  2014.  As  per  scheme,  recapitalization  assistance  was released between March and August 2015 by GoI and State Govt to 20 DCCBs in 3 States viz., UP, Maharashtra and West Bengal. The State Govt of J&K, DFS, GoI and NABARD have signed a MoU on 04 November 2015 for revival of 3 DCCBs in J&K.

*****

## PQ No.969-Bank-wise data on net profit

| Bank Name                      | Net Profit- Rs.crore   | Net Profit- Rs.crore   | Net Profit- Rs.crore   |
|--------------------------------|------------------------|------------------------|------------------------|
|                                | Mar-13                 | Mar-14                 | Mar-15                 |
| Allahabad Bank                 | 1,157                  | 1,110                  | 604                    |
| Andhra Bank                    | 1,289                  | 436                    | 638                    |
| Bank of Baroda                 | 3,536                  | 3,387                  | 2,714                  |
| Bank of India                  | 2,368                  | 2,061                  | 445                    |
| Bank of Maharashtra            | 760                    | 386                    | 451                    |
| Bharatiya Mahila Bank Ltd.     |                        | 12                     | 31                     |
| Canara Bank                    | 2,737                  | 2,311                  | 2,584                  |
| Central Bank of India          | 1,015                  | -1,263                 | 606                    |
| Corporation Bank               | 1,435                  | 562                    | 584                    |
| Dena Bank                      | 810                    | 552                    | 265                    |
| IDBI Bank Limited              | 1,690                  | 594                    | 608                    |
| Indian Bank                    | 1,485                  | 1,117                  | 984                    |
| Indian Overseas Bank           | 442                    | 446                    | -414                   |
| Oriental Bank of Commerce      | 1,328                  | 1,139                  | 497                    |
| Punjab & Sind Bank             | 339                    | 301                    | 121                    |
| Punjab National Bank           | 4,545                  | 3,080                  | 2,679                  |
| Syndicate Bank                 | 1,919                  | 1,668                  | 1,493                  |
| UCO Bank                       | 569                    | 1,417                  | 976                    |
| Union Bank of India            | 2,070                  | 1,599                  | 1,594                  |
| United Bank of India           | 392                    | -1,213                 | 256                    |
| Vijaya Bank                    | 586                    | 416                    | 439                    |
| State Bank of Bikaner & Jaipur | 730                    | 732                    | 777                    |
| State Bank of Hyderabad        | 1,250                  | 1,020                  | 1,317                  |
| State Bank of India            | 11,699                 | 8,605                  | 9,835                  |
| State Bank of Mysore           | 416                    | 274                    | 409                    |
| State Bank of Patiala          | 667                    | 448                    | 362                    |
| State Bank of Travancore       | 615                    | 316                    | 4                      |
| Public Sector Banks            | 45,850                 | 31,511                 | 30,860                 |
| Catholic Syrian Bank Ltd.      | 33                     | 27                     | -53                    |
| City Union Bank Ltd.           | 322                    | 347                    | 395                    |
| Dhanlaxmi Bank Limited         | 3                      | -252                   | -241                   |
| Federal Bank Ltd.              | 838                    | 839                    | 1,006                  |
| ING Vysya Bank Ltd.            | 613                    | 658                    | 506                    |
| Jammu & Kashmir Bank Ltd.      | 1,055                  | 1,182                  | 509                    |
| Karnataka Bank Ltd.            | 348                    | 311                    | 451                    |
| Karur Vysya Bank Ltd.          | 550                    | 430                    | 456                    |
| Lakshmi Vilas Bank Ltd.        | 92                     | 60                     | 132                    |
| Nainital Bank Ltd.             | 51                     | 65                     | 67                     |
| Ratnakar Bank Ltd.             | 92                     | 93                     | 207                    |
| South Indian Bank Ltd.         | 502                    | 508                    | 307                    |

Source:Off-site returns as reported by banks, domestic operations Sep-15 data provisional

| Tamilnad Mercantile Bank Ltd.                                                  | 440    | 301    | 379    |
|--------------------------------------------------------------------------------|--------|--------|--------|
| Axis Bank Ltd.                                                                 | 4,131  | 5,268  | 6,067  |
| Bandhan Bank Ltd.                                                              |        |        |        |
| DCB Bank Ltd                                                                   | 102    | 151    | 191    |
| HDFC Bank Ltd.                                                                 | 6,620  | 8,232  | 9,968  |
| ICICI Bank Ltd.                                                                | 7,148  | 7,813  | 9,826  |
| IndusInd Bank Ltd.                                                             | 1,061  | 1,408  | 1,794  |
| Kotak Mahindra Bank Ltd.                                                       | 1,361  | 1,503  | 1,866  |
| Yes Bank Ltd                                                                   | 1,301  | 1,618  | 2,005  |
| Capital Local Area Bank Ltd                                                    | 13     | 11     | 14     |
| Coastal Local Area Bank Ltd                                                    | 7      | 6      | 7      |
| Krishna Bhima Samruddhi Local Area Bank Ltd                                    | 2      | 4      | 4      |
| Subhadra Local Area Bank Ltd                                                   | 2      | 2      | 1      |
| Private Sector Banks                                                           | 26,687 | 30,582 | 35,864 |
| AB Bank Ltd                                                                    | 8      | 7      | 11     |
| Abu Dhabi Commercial Bank Ltd.                                                 | 18     | 10     | 14     |
| American Express Banking Corp.                                                 | -73    | -91    | -73    |
| Australia and New Zealand Banking Group Limited                                | 4      | 51     | 56     |
| BNP Paribas                                                                    | 187    | 195    | 298    |
| Bank Internasional Indonesia                                                   |        | 1      | 0      |
| Bank of America, National Association                                          | 469    | 703    | 594    |
| Bank of Bahrain & Kuwait BSC                                                   | 17     | 10     | 17     |
| Bank of Ceylon                                                                 | 14     | 10     | 12     |
| Bank of Nova Scotia                                                            | 287    | 293    | 164    |
| Barclays Bank Plc                                                              | -56    | 382    | 412    |
| CTBC Bank                                                                      | -13    | -19    | 1      |
| Citibank N.A.                                                                  | 2,718  | 2,893  | 3,423  |
| Commonwealth Bank of Australia                                                 | -6     | -4     | -2     |
| Credit Agricole Corporate and Investment Bank                                  | 155    | 96     | 97     |
| Credit Suisse AG                                                               | 90     | 70     | 243    |
| DBS Bank Limited                                                               | 289    | 2      | -275   |
| Deutsche Bank ( Asia )                                                         | 1,033  | 729    | 1,406  |
| Doha Bank Qsc                                                                  |        |        | 1      |
| FIRSTRAND BANK                                                                 | -59    | -77    | -64    |
| HSBC Bank Oman S.A.O.G                                                         | 25     | -2     | -2     |
| Hongkong & Shanghai Banking Corporation Ltd.                                   | 1,936  | 1,490  | 1,629  |
| Industrial and Commercial Bank of China Limited                                | 16     | 23     | 32     |
| JP Morgan Chase Bank, National Association                                     | 673    | 813    | 871    |
| JSC VTB Bank                                                                   | 3      | 3      | 0      |
| KBC Bank NV                                                                    | 14     | 27     | -11    |
| Krung Thai Bank pcl                                                            | 4      | 5      | 7      |
| Mashreq Bank PSC                                                               | 12     | 14     | 12     |
| Mizuho Corporate Bank,Ltd.                                                     | 173    | 201    | 176    |
| National Australia Bank                                                        | -9     | 12     | 15     |
| Rabobank International (Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A.) | 12     | 27     | 17     |
| SBERBANK                                                                       | -2     | -1     | 14     |

| SBM Bank (Mauritius) Ltd.                | 33     | -47    | 2      |
|------------------------------------------|--------|--------|--------|
| Shinhan Bank                             | 44     | 56     | 80     |
| Societe Generale                         | 37     | 29     | 40     |
| Sonali Bank Ltd                          | 2      | 1      | 1      |
| Standard Chartered Bank                  | 2,960  | 1,584  | 3,051  |
| Sumitomo Mitsui Banking Corporation      | -16    | 23     | 100    |
| The Bank of Tokyo - Mitsubishi UFJ, Ltd. | 268    | 182    | 212    |
| The Royal Bank of Scotland N.V.          | 223    | 355    | 117    |
| UBS AG                                   | 87     | 38     | 46     |
| United Overseas Bank Limited             | 2      | 1      | 21     |
| Westpac Banking Corporation              | 8      | 22     | 27     |
| Woori Bank                               | 2      | 12     | 17     |
| Foreign Banks                            | 11,588 | 10,131 | 12,810 |
| All Banks                                | 84,125 | 72,224 | 79,534 |

## ANNEXURE -- I Details of Profit & loss of StCBs

` lakh

| Sr.No.   | Bank Name         | 2012-13   | 2012-13   | 2013-14   | 2013-14   | 2014-15*   | 2014-15*   |
|----------|-------------------|-----------|-----------|-----------|-----------|------------|------------|
| Sr.No.   | Bank Name         | Profit    | Loss      | Profit    | Loss      | Profit     | Loss       |
| 1        | Andaman & Nicobar | 289.45    |           | 293.56    |           | 444.23     |            |
| 2        | Andhra Pradesh    | 7388.98   | 0.00      | 8955.72   |           | 7747.26    |            |
| 3        | Arunachal Pradesh | 544.84    | 0.00      |           | 56.74     |            |            |
| 4        | Assam             | 1985.46   |           | 895.49    |           | 774.59     |            |
| 5        | Bihar             | 5950.25   |           | 2412.04   |           | 3939.65    |            |
| 6        | Chandigarh        | 316.04    | 0.00      | 413.36    |           | 503.48     |            |
| 7        | Chhattisgarh      | 2408.84   | 0.00      | 2716.57   |           | 1986.06    |            |
| 8        | Delhi             | 2781.05   |           | 804.00    |           | 784.21     |            |
| 9        | Goa               | 4243.12   |           |           | 1135.75   |            | 812.86     |
| 10       | Gujarat           | 6635.51   |           | 1392.84   |           | 4461.06    |            |
| 11       | Haryana           | 3021.12   |           | 2197.92   |           | 1622.59    |            |
| 12       | Himachal Pradesh  | 5046.19   |           | 4068.16   |           | 5985.46    |            |
| 13       | Jammu & Kashmir   | 4.34      | 0.00      | 149.36    |           | 252.86     |            |
| 14       | Jharkhand         |           | 51.92     |           | 233.45    |            | 448.65     |
| 15       | Karnataka         | 3100.00   | 0.00      | 3450.00   |           | 3030.00    |            |
| 16       | Kerala            | 5315.85   |           |           | 6358.40   |            |            |
| 17       | Madhya Pradesh    | 3903.70   | 0.00      | 6559.27   |           | 7408.96    |            |
| 18       | Maharashtra       | 39117.46  |           | 40051.42  |           | 41059.43   |            |
| 19       | Manipur           |           | 151.39    |           | 507.14    |            |            |
| 20       | Meghalaya         | 1451.51   | 0.00      | 1934.18   |           | 948.69     |            |
| 21       | Mizoram           | 298.82    | 0.00      | 382.14    |           | 389.02     |            |
| 22       | Nagaland          | 104.92    |           | 205.59    |           | 0.00       |            |
| 23       | Orissa            | 1264.33   |           | 1405.28   |           | 1560.99    |            |
| 24       | Pondicherry       |           | 228.43    | 254.84    |           |            | 588.73     |
| 25       | Punjab            | 1891.47   | 0.00      | 1728.76   |           | 2127.63    |            |

| 26   | Rajasthan     |   2353.33 |        | 1512.70   |         |   2632.17 |         |
|------|---------------|-----------|--------|-----------|---------|-----------|---------|
| 27   | Sikkim        |    285.26 |        | 259.54    |         |    349.49 |         |
| 28   | Tamil Nadu    |   4323.79 | 0.00   | 3221.51   |         |   4138.1  |         |
| 29   | Tripura       |   2266.37 |        | 2608.91   |         |   2803.03 |         |
| 30   | Uttar Pradesh |   3236.44 | 0.00   | 4023.55   |         |   4035.15 |         |
| 31   | Uttarakhand   |    443.96 | 0.00   | 713.78    |         |    915.5  |         |
| 32   | West Bengal   |   1003.64 |        |           | 1063.67 |   6112.94 |         |
|      | TOTAL         | 110976    | 431.74 | 92610.49  | 9355.15 | 106013    | 1850.24 |

Data of 29 StCBs available for the year 2014-15

Annexure-I State-wise details of Profit and loss of DCCBs

|       |                  | 2012-13   | 2012-13   | 2013-14   | 2013-14   | 2014-15*   | 2014-15*   |
|-------|------------------|-----------|-----------|-----------|-----------|------------|------------|
| Sr.no | State            | Profit    | Loss      | Profit    | Loss      | Profit     | Loss       |
| 1     | Andhra Pradesh   | 8850.91   |           | 6933.84   |           |            | 8749.08    |
| 2     | Bihar            | 2758.62   | 360.90    |           | 4085.46   |            | 2484.48    |
| 3     | Chhattisgarh     | 2436.95   |           | 9628.55   |           | 3345.24    |            |
| 4     | Gujarat          | 8582.04   | 282.52    | 10042.39  |           | 8133.42    |            |
| 5     | Haryana          | 927.03    | 1785.03   | 747.23    |           |            | 3264.92    |
| 6     | Himachal Pradesh | 3470.74   |           | 2300.63   |           | 4966.98    |            |
| 7     | Jammu& Kashmir   | 750.90    | 88.81     | 469.27    |           | 79.18      |            |
| 8     | Jharkhand        | 1476.97   |           | 566.24    |           |            | 5247.61    |
| 9     | Karnataka        | 11095.31  | 454.41    | 10062.74  |           | 7573.07    |            |
| 10    | kerala           | 5521.63   | 2778.60   | 11144.91  |           | 14663.14   |            |
| 11    | Madhya Pradesh   | 17502.79  |           | 19276.65  |           | 7843.75    |            |
| 12    | Maharashtra      | 49982.79  | 8835.11   | 27776.93  |           | 28126.78   |            |
| 13    | Odisha           | 4160.76   | 146.22    | 7371.34   |           | 2036.68    |            |
| 14    | Punjab           | 3739.58   |           | 3805.33   |           | 2181.30    |            |
| 15    | Rajasthan        | 7546.37   |           |           | 194.19    | 1140.02    |            |
| 16    | Tamil Nadu       | 24780.53  |           | 26065.22  |           | 18738.62   |            |
| 17    | Uttar Pradesh    | 8132.48   | 16824.23  |           | 2960.82   |            | 12565.78   |
| 18    | Uttarakhand      | 5126.56   |           | 4661.16   |           | 1218.75    |            |
| 19    | West Bengal      | 3595.55   | 2046.41   | 4139.94   |           | 4542.77    |            |
| 20    | Telangana*       |           |           |           |           | 2805.31    |            |
|       | Total            | 170438.51 | 33602.24  | 144992.37 | 7240.47   | 104589.70  | 32311.87   |

Data of 351 banks only available for the year 2014-15 (provisional)

(provisional)

` lakh

| State-wise list of unlicensed District Central Cooperative Banks (DCCBs)   | State-wise list of unlicensed District Central Cooperative Banks (DCCBs)   | State-wise list of unlicensed District Central Cooperative Banks (DCCBs)   |
|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|
|                                                                            | No. of                                                                     | Name of the                                                                |
| State                                                                      | unlicensed                                                                 | unlicensed DCCB                                                            |
|                                                                            | banks                                                                      |                                                                            |
| Jammu & Kashmir                                                            | 3                                                                          | Anantnag                                                                   |
|                                                                            |                                                                            | Baramulla                                                                  |
|                                                                            |                                                                            | Jammu                                                                      |
| Maharashtra                                                                | 3                                                                          | Buldana                                                                    |
|                                                                            |                                                                            | Nagpur                                                                     |
|                                                                            |                                                                            | Wardha                                                                     |
| Uttar Pradesh                                                              | 16                                                                         | Allahabad                                                                  |
|                                                                            |                                                                            | Azamgarh                                                                   |
|                                                                            |                                                                            | Bahraich                                                                   |
|                                                                            |                                                                            | Ballia                                                                     |
|                                                                            |                                                                            | Basti                                                                      |
|                                                                            |                                                                            | Deoria Kasia                                                               |
|                                                                            |                                                                            | Faizabad                                                                   |
|                                                                            |                                                                            | Fatehpur                                                                   |
|                                                                            |                                                                            | Ghazipur                                                                   |
|                                                                            |                                                                            | Gorakhpur                                                                  |
|                                                                            |                                                                            | Hardoi                                                                     |
|                                                                            |                                                                            | Jaunpur                                                                    |
|                                                                            |                                                                            | Siddarthnagar                                                              |
|                                                                            |                                                                            | Sitapur                                                                    |
|                                                                            |                                                                            | Sultanpur                                                                  |

Varanasi

| West Bengal   |   1 | Birbhum   |
|---------------|-----|-----------|
| Grand Total   |  23 |           |