PSBS Posted Net Loss of Nearly Rs 18,000 Cr in FY16

PSBs - Public sector banks posted a net loss of Rs 17,993 cr in

the last fiscal, displayed a government data. According to the
data presented in Lok Sabha by Santosh Gangwar - Minister of
State for Finance, in reply to a query, the 28 public sector banks
(PSBs) reported a collective net loss of Rs 17,993 cr in 2015-16.
Of them, 14 banks reported net loss in their books for 2015-16,
while the remaining registered profits. Among the ones making
losses, Bank of India had the highest share with Rs 6,089 cr;
Bank of Baroda Rs 5,396 cr; Punjab National Bank (PNB) Rs
3,974 cr; IDBI Bank Rs 3,665 cr; Oriental Bank of Commerce Rs 2,897 cr; UCO Bank Rs
2,799 cr; Syndicate Bank Rs 1,643 cr and Central Bank of India Rs 1,418 cr.
The high level of NPAs - non-performing assets and rules by the Reserve Bank of India
(RBI) to make higher provisioning for sub-standard assets were the major reasons for the
banks to report big losses. However, banks have now taken various corrective measures for
loan recovery and are supposed to return to profits in the next few quarters. Of those who
made profits in their books last fiscal encompassed SBI at Rs 9,951 cr; State Bank of
Hyderabad Rs 1,065 cr; State Bank of Bikaner & Jaipur Rs 851 cr and Andhra Bank Rs 540
cr.
Gangwar said that the Indian government has proposed to infuse Rs 70,000 cr into the PSBs
out of the budgetary allocation for 4 years to 2018-19 under the Indradhanush Plan. He said
that the government had already infused a sum of Rs 25,000 cr in 19 PSBs during the
financial year 2015-16 and a budgetary provision of Rs 25,000 cr had been made for 201617. The government had allocated Rs 22,915 cr to 13 PSBs as on 19 th July, 2016, he added.
The government has revised performance indicators for the banks which are basically built
on enhancing efficiency and capital utilization.

The following table gives the latest update of last two quarters:
Banks

Price

% FII
Holding

PAT SEP' 16

PAT JUN' 16

ALLAHABAD BANK

67.6
51.05
161.1
116.2
308.5
84.85
45.1
34.3
67.3
115.9
309.8
116.15
134.35
255.1
67.8
243.55
24.9
116.25
134
702
254.1
552.45
551.15
66.1
33.6
141.9
44.25

4.71
7.44
11.93
1.89
6.43
0.21
1.88
4.26
4.71
1.89
6.43
8.06
11.07
9.52
1.86
3.05
0.4
8.06
11.07
1.23
9.52
0.03
0.58
4.64
1.78
5.81
2.35

65.03
51.42
552.12
126.84
356.91
-641.82
206.28
-44.32
65.03
126.84
356.91
153.27
549.36
-116.65
55.52
405.14
-765.13
153.27
549.36
-210.1
-116.65
-183.53
-587.69
82.42
-384.83
176.67
154.55

-564.96
31.09
423.62
-741.36
228.95
-599.81
35.92
-279.35
-564.96
-741.36
228.95
100.69
306.36
867.32
241.1
307.36
-1450.5
100.69
306.36
-221.56
867.32
-471.88
-742.89
79.13
-440.56
166.32
161.66

ANDHRA BANK
BANK OF BARODA
BANK OF INDIA
CANARA BANK
CENTRAL BANK OF INDIA
CORPORATION BANK
DENA BANK
FUTURE ALLAHABAD BANK
FUTURE BANK OF INDIA
FUTURE CANARA BANK
FUTURE ORIENTAL BANK OF COMMERCE
FUTURE PNB
FUTURE SBI
IDBI
INDIAN BANK
IOB
ORIENTAL BANK OF COMMERCE
PNB
SBBJ
SBI
STATE BANK OF MYSORE
STATE BANK OF TRAVANCORE
SYNDICATE BANK
UCO BANK
UNION BANK OF INDIA
VIJAYA BANK

As you can see from the above table, the public sector banks as a whole has recovered
majorly and turned out to be profitable in the September Quarter (Q2).

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research
team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

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his Relative:

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Article Written by
Salman Hashmi