JOIN USThe 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 the highest profit of Rs 1,258.99 crore and the Vijaya Bank’s profit worked out to be Rs 727.02 crore.
The remaining 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 the Rs 14,000-crore scam allegedly perpetrated by Nirav Modi and associates, posted a net loss of Rs 12,282.82 crore last fiscal. In 2016-17, the 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.
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.
The Indian banking sector is grappling with mounting NPAs and host of scams and frauds.