Losses of Public Sector Banks Details of operating profit, provisioning and net profit

GOVERNMENT OF INDIA 
MINISTRY OF FINANCE 
DEPARTMENT OF FINANCIAL SERVICES 

LOK SABHA 

STARRED QUESTION NO. 80 
TO BE ANSWERED ON THE 14TH DECEMBER 2018 
AGRAHAYANA 23, 1940 (SAKA) 

Losses of Public Sector Banks 

80. SHRI A. ARUNMOZHITHEVAN: 

Will the Minister of FINANCE be pleased to state: 
  • (a) whether the State owned banks saw their cumulative losses widen nearly three and a half times to Rs. 14, 716 crore in the July-September quarter of the current fiscal due to mounting bad loans; 
  • (b) if so, the details there of,bank-wise; 
  • (c) whether 21 Public Sector Banks had posted a net loss of Rs. 4,284 crore in the September quarter of 2017-18 and if so, the details there of; 
  • (d) whether India’s second largest Public Sector Bank suffered huge losses after the detection of a massivefraud to the tune of nearly Rs. 14,000 crore;and 
  • (e) if so, the details there of? 
Losses+of+Public+Sector+Banks
ANSWER 

The Finance Minister 
(SHRI ARUN JAITLEY) 

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

STATEMENT FOR LOK SABHA STARRED QUESTION NO. 80 FOR 14TH DECEMBER 2018 REGARDING“ LOSSES OF PUBLIC SECTOR BANKS” BY SHRI A. ARUNMOZHI THE VAN, MEMBER OF PARLIAMENT. 

(a) to (c): Asset Quality Review (AQR) carried out in 2015 for clean and fully provisioned bank balance-sheets revealed high incidence of non-performing assets (NPAs).Expected losses on stressed loans, not provided for earlier under flexibility given to restructured loans, were reclassified as NPAs and provided for. Public Sector Banks (PSBs) initiated cleaning up by recognizing NPAs and provided for expected losses. Further, during the fourth quarter of the financial year (FY) 2017-18, all such schemes for restructuring stressed loans were withdrawn.As a result, while PSBs posted operate in profits in the second quarter of the current and preceding financial years of Rs. 36,757 core and Rs. 48,177 crore respectively in the aggregate, many had net losses primarily on account of countenancing provision for NPA recognize das a result of AQR initiate in 2015 and subsequent transparent recognition by banks including under RBI’s Revised Resolution frame work for Stressed Assets issued on 12.2.2018. PSBs made aggregate provision for NPAs and other contingencies of Rs. 42,124 crore and Rs. 49,365 crore respectively in the said two quarters. Additionally, accuse of hardening of bond yields,in the second quarter of the current financial year, PSBs had mark-to-market losses on their investment portfolios of Rs. 9,350 crore as against aggregate mark-to-market losses of Rs. 3,096 crore in the second quarter of the previous financial year by many PSBs, with several other PSBs making profits. Bank-wise details of net profit of Public Sector Banks (PSBs) for the July-September quarter of the current financial year (2018-19) and the previous financial year(2017-18) are at Annexure. 

(d) and (e): Punjab National Bank, the second largest PSB, posted an operating profit of Rs 7,034 crore and had made a provision of Rs. 11,262 crore on account of ageing provisions for NPA sand other contingencies (primarily on account of continuingageing provision for NPAs due to transparent recognition of stressed assets) and Rs. 1,245 for mark-to-market losses, thus posting a net loss of Rs. 5,472 crore for the half-year ended September 2018. 
Annexure-
Lok Sabha Starred Question No. 80 for 14.12.2018 regarding “losses of Public Sector Banks” Details of operating profit, provisioning and net profit

Banks Q2 F Y'2017-18 Q2 F Y'2018-19


Opera ting   profit


MTM
Provi sions
Provisions for NPA & contingenci es (excl.
MTM
Provisions)


Net profit


Opera ting profit


MTM
Provi sions
Provisions for NPA & cntingencies (exc l.MTM
Provisions)


Net profit
AllahabadBank 1,223
76
1,077
70
534
418
1,939 -1,823
Andhra Bank 1,295
89
1,591
-385 1,298
266
1,465 -434
Bank of Baroda 3,042
0
2,686
355
3,082
261
2,395 425
Bank of India 2,233
96
1,958
179
1,647
165
2,638 -1,156
Bank of Maharashtr
692
13
702
-23
794
232
535
27
CanaraBank 2,480
259
1,961
260
2,327
333
1,695 300
CentralBank of
India

869

1,342

1,620

-750

509

675

758

-924
CorporationBank 1,163
117
2,081
-1,035
899
39
757
103
Dena Bank
397
35
547
-185
442
55
804
-417
IDBI Bank Limited 2,803
107
2,894
-198
850
963
3,490 -3,602
Indian Bank 1,376
39
885
452
1,191
326
715
150
Indian Overseas
Bank

1,039

18

2,243

-1,223

1,304

243

1,548

-487
OrientalBank of
Commerce

1,551

167

3,134

-1,750

972

272

598

102
PunjabNational
Bank

3,279

84

2,634

561

2,839

1,254

6,118

-4,532
Punjaband Sind
Bank

359

3

342

14

351

133

327

-109
SyndicateBank 1,174
250
819
105
570
1,239
874
-1,543
UCO Bank
244
113
754
-623
506
412
1,231 -1,136
UnionBank 1,939
143
3,327
-1,531 1,772
196
1,437 139
UnitedBank of
India

286

144

487

-345

206

597

492

-883
VijayaBank
734
0
548
185
759
22
597
140
State Bank of India 19,999
0
18,418 1,582 13,905 1,249 11,711 945
Annexure-II 
Lok Sabha Starred Question No. 80 for 14.12.2018 regarding “Losses of Public Sector Banks” Details of operating profit, provisioning and net profit for Punjab National Bank 

Banks
Q2 F Y'2017-18


Oper a tin g pr o fit


MTM
Losses

P r o vi s i o n s f o r NPA
& contingencies (excl. MTM
Losses )


Net profit
Q4 F Y'2017-18
-447
625
12,325
-13,417
Q1 FY ’2018-19
4,195
9
5,126
-940
Q2 FY’2018-19
2,839
1,254
6,118
-4,532

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