INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The cumulative loss of public sector banks crossed a whopping Rs 87,357 crore in the 2017-18 fiscal, with scam-tainted Punjab
National Bank topping the chart with a hit of nearly Rs 12,283 crore followed by IDBI Bank.
Out of 21 state-owned banks, only two -- Indian
Bank and Vijaya Bank -- posted profits during 2017-18
Indian Bank posted highest profit of Rs 1,258.99 crore and the Vijaya Bank's profit worked out to be Rs 727.02 crore.
The rest 19
government-run banks collectively posted a net loss of Rs 87,357 crore during the fiscal, as per the latest quarterly numbers posted by
these lenders.
All 21 banks had together posted a net profit of Rs 473.72 crore in the 2016-17 fiscal.
Punjab National Bank, which is
reeling under over Rs 14,000-crore scam allegedly perpetrated by Nirav Modi and associates, posted a net loss of Rs 12,282.82 crore last
In 2016-17, the Delhi-headquartered bank had posted a profit of Rs 1,324.8 crore.
PNB was followed by IDBI Bank, whose net loss widened to
Rs 8,237.93 crore in the fiscal ended March 2018 from Rs 5,158.14 crore in the previous year.
India's largest bank State Bank of India too
added hugely to the combined losses of PSBs
SBI's net loss in 2017-18 stood at Rs 6,547.45 crore as against a net profit of Rs 10,484.1 crore in 2016-17.
Indian banking sector is
grappling with mounting non-performing assets (NPAs) and host of scams and frauds.
The NPA in the banking sector stood at Rs 8.31 lakh crore
as of December 2017.
Weak financials due to mounting bad loans have already pushed 11 banks, out of 21 state-owned banks, under the Prompt
Corrective Action (PCA) framework of the Reserve Bank.
The recent tight prudential norms released by the RBI on February 12 have added to
the NPA woes.
Interim Finance Minister Piyush Goyal has announced setting up of a committee to give recommendations in two weeks on
formation of an Asset Reconstruction Company for faster resolution of stressed accounts.
The committee under Sunil Mehta, non-executive
chairman of PNB, will make recommendations in two weeks on setting up of an Asset Reconstruction Company or Asset Management Company for
faster resolution of stressed accounts.
The finance minister said the committee will consider whether such an arrangement will be good for
the banking system and, if any such suggestion is advisable, it will also consider the modalities by which such an ARC and/or and AMC should
