Lok Sabha Question No. 122 (STARRED), answered on 2016-03-04
Subject: Banking Reforms
Ministry: FINANCE
Asked by: CHINTAMAN NAVSHA WANAGA, (ADV.) JOICE GEORGE

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

LOK SABHA

## STARRED QUESTION NO. *122 TO BE ANSWERED ON THE 4 TH MARCH , 2016 / PHALGUNA 14, 1937 (SAKA)

## BANKING REFORMS

## *122 ADV. CHINTAMAN NAVASHA WANAGA:

## ADV. JOICE GEORGE:

- Will the Minister of FINANCE be pleased to state: (a) whether the performance of majority of PSU banks have been found to be dismal and if so, the details thereof along with the reasons therefor; (b) whether the Government proposes to unleash major banking reforms so as to safeguard the interests of customers, investors and banks and if so, the details thereof; (c) whether any roadmap has been drawn for the purpose and if so, the details thereof; (d) whether the Government also proposes to plan, to improve in the governance of PSBs, and if so, the details thereof; and (e) the strategy/steps proposed to be taken by the Government to speed up reforms in the banking sector?

## ANSWER

THE FINANCE MINISTER (SHRI ARUN JAITLEY)

(a) to (e): A Statement is laid on the Table of the House. *****

<!-- image -->

STATEMENT FOR LOK SABHA STARRED QUESTION NO. *122 FOR 4 TH MARCH, 2016 REGARDING BANKING REFORMS TABLED BY ADV. CHINTAMAN NAVASHA WANAGA AND ADV. JOICE GEORGE, MEMBERS OF PARLIAMENT.

## (a) to (e):

The Government formally reviews the performance of Public Sector Banks (PSBs) every quarter after their quarterly results. The last such review based on September 2015 quarter results, was done in the month of November 2015. The review covered credit growth, deposit growth, net profit and asset quality among others. Quantitative details of the review are annexed . The reasons for the comparatively lower profitability of Public Sector Banks is higher provisioning due to stress on account of low global and domestic demand, stalled large projects and lower corporate profits, as identified in the last review. The Government has put in place a comprehensive framework for improving the financial health of PSBs called Indradhanush, which inter-alia include reforms in the Appointments process, creation of Banks Board Bureau to recommend whole time directors and chairmen, four years Capitalisation programme to remain compliant with BaselIII norms, Destressing PSBs through various policy interventions, Empowerment through no interference policy, Framework of accountability through key performance indicators and Governance reforms.

- ******

<!-- image -->

## Lok Sabha Starred Question No. *122 dated 4.3.2016

## Annex

(Rs. crore)

|                               | Deposits (Global)   | Deposits (Global)   | Deposits (Global)   | Advances (Global)   | Advances (Global)   | Advances (Global)   | Net Profit   | Net Profit   |          | GNPA (%)   | GNPA (%)   | GNPA (%)   |
|-------------------------------|---------------------|---------------------|---------------------|---------------------|---------------------|---------------------|--------------|--------------|----------|------------|------------|------------|
| BANK                          | Mar-15              | Sep'15              | Growth              | Mar-15              | Sep'15              | Growth (%)          | Mar-15       | Sep'15       | Gr (YoY) | Mar-15     | Sep'15     | Growth (%) |
| Allahabad Bank                | 1,93,424            | 1,88,151            | (%) . -2.73         | 1,53,095            | 1,51,949            | -0.75               | 621          | 324          | 27.55    | 5.46       | 5.26       | -3.66      |
| Andhra Bank                   | 1,55,012            | 1,65,985            | 7.08                | 1,29,576            | 1,30,908            | 1.03                | 638          | 454          | 80.88    | 5.31       | 5.71       | 7.53       |
| Bank of Baroda                | 6,17,560            | 6,12,458            | -0.83               | 4,37,280            | 4,26,568            | -2.45               | 3398         | 1177         | -52.29   | 3.72       | 5.56       | 49.46      |
| Bank of India                 | 5,31,907            | 5,25;195            | -1.26               | 4,11,726            | 3,95,785            | -3.87               | 1709         | -997         | -162.63  | 5.39       | 7.55       | 40.07      |
| Bank of Maharashtra           | 1,22,119            | 1,26,800            | 3.83                | 1,01,210            | 1,00,092            | -1.10               | 451          | 131          | -53.38   | 6.33       | 7.98       | 26.07      |
| Canara Bank                   | 4,73,840            | 4,85,206            | 2.40                | 3,34,937            | 3,28,387            | -1.96               | 2703         | 1008         | -29.71   | 3.89       | . 4.27     | 9.77       |
| Central Bank of India         | 2,55,572            | 2,68,753            | 5.16                | 1,94,967            | 1,94,594            | -0.19               | 606          | 316          | 7.12     | 6.09       | 6.86       | 12.64      |
| Corporation Bank              | 1,99,346            | 2,04,228            | ·2.45               | 1,47,708            | 1,45,213            | -1.69               | 584          | 393          | 0.23     | 4.81       | 5.32       | 10.60      |
| Dena Bank                     | 1,15,936            | 1,06,430            | -8.20               | 80,629              | 77,204              | -4.25               | 265          | 54           | -59.49   | 5.45       | 6.84       | 25.50      |
| I.O.B.I.                      | 2,59,836            | 2,39,282            | ~7.91               | 2,15,792            | 2,13,406            | -1.11               | 873          | 255          | 13.36    | 5.88       | 6.92       | 17.61      |
| Indian Bank                   | 1,69,225            | 1,72,711            | 2.06                | 1,28,832            | 1,25,292            | -2.75               | 1005         | 585          | 12.10    | 4.40       | 4.61       | 4.68       |
| Indian Overseas Bank          | 2,46,049            | 2,33,026            | ~5.29               | 1,79,041            | 1,76,516            | -1.41               | -454         | -536         | -2161.54 | 8.33       | 11.00      | 32.05      |
| Oriental Bank of Comm.        | 2,04,010            | 1,99,201            | -2.36               | 1,48,039            | 1,50,082            | 1.38                | 497          | 559          | -14.76   | 5.18       | 5.70       | 10.04      |
| Punjab National Bank          | 5,01 ;379           | 5,39,924            | 7.69                | 3,80,534            | 3,80,958            | 0.11                | 3062         | 1342         | -32.25   | 6.55       | 6.36       | -2.90      |
| Punjab &Sindh Bank            | 86,715              | 86,152              | -0.65               | 64,796              | 64,884              | 0.14                | 121          | 168          | 25.36    | 4.76       | 4.92       | 3.36       |
| Syndicate bank                | 2,55,388            | 2,63,722            | 3.26                | 2,05,804            | 2,08,178            | 1.15                | 1523         | 634          | -20.81   | 3.13       | 3.72       | 18.85      |
| UCO Bank                      | 2,14,337            | 2,16,464            | 0.99                | 1,51,812            | 1,43,598            | -5.41               | 1138         | 413          | -33.94   | 6.76       | 8.51       | 25.89      |
| Union Bank of India           | 3,16,870            | 3,30,665            | 4.35                | 2,62,757            | 2,54,022            | -3.32               | 1781         | 1177         | 13.61    | 4.96       | 6.12       | 23.39      |
| United Bank of India          | 1,08,818            | 1,11,447            | 2.42                | 69,070              | 68,681              | -0.56               | 256          | 114          | 4.00     | 9.49       | 8.90       | -6.22      |
| VijayaBank                    | 1,26,343            | 1,23,286            | -2.42               | 87,692              | 87,026              | -0.76               | 439          | 258          | -15.51   | 2.78       | 3.98       | 43.17      |
| BhartiyaMahilaBank            | 751                 | 920                 | 22.49               | 352                 | 446                 | 26.68               | 20           | 14           | 5.56     | 0.00       | 0.00       | 0.00       |
| State Bank of India           | 15,76,793           | 16,34,115           | 3.64                | 13,35,424           | 13,70,701           | 2.64                | 13102        | 7571         | 17.40    | 4.25       | 4.15       | -2.35      |
| SB of Bik. &Jaipur            | 84,239              | 89,146              | . 5.82              | 71,153              | 69,954              | -1.68               | 777          | 451          | 35.42    | 4.14       | 4.20       | 1.45       |
| State Bank of Hyderabad       | 1,30,166            | 1,31,051            | 0.68                | 1,05,053            | 1,05,301            | 0.24                | 1317         | 627          | 16.54    | 4.59       | 4.92       | 7.19       |
| State Bank of Mysore          | 66,064              | 69,353              | 4.98                | 53,296              | 51,926              | -2.57               | 409          | 226          | 27.68    | 4.00       | 4.19       | 4.75       |
| State Bank of Patiala         | 91,987              | 99,899              | 8.60                | 80,648              | 79,980              | -0.83               | 362          | 223          | 2.76     | 5.41       | 6.73       | 24.40      |
| State Bank of Travancore Only | 91,077              | 97,112              | ·6.63               | 69,907              | . 67,328            | -3.69               | 335          | 184          | 166.67   | 3.37       | 3.82       | 13.35      |
| All PSBs                      | 71,94,762           | 73,20,682           | 1.75                | 56,01,130           | 55,68,980           | -0.57               | 37539        | 17124        | -19.66   | 4.97       | 5.71       | 14.83      |

<!-- image -->

Sample Only

<!-- image -->