July 18, 2017
Nine of the twenty-one public sector banks (PSBs) in India reported losses in FY17. Santosh Kumar Gangwar, the Minister of State for Finance, revealed this information in a written reply in the Upper House of the Indian Parliament, the Rajya Sabha. These nine PSBs that reported losses are IDBI Bank, Indian Overseas Bank, Bank of India, Allahabad Bank, Bank of Maharashtra, Dena Bank, Central Bank of India, UCO Bank and Oriental Bank as reported by the Financial Express.
According to Mr. Gangwar, IDBI reported a loss of Rs.5,158 crore in the last financial year, while Indian Overseas Bank reported a loss of Rs.3,417 crore in the same period. He also informed the Rajya Sabha that all the public sector banks were maintaining positive balances in their revenue reserves. He further said that under the Indradhanush Plan, Rs.70,000 crore were earmarked to be infused into these banks by 2019.
“The government has already infused a sum of Rs 47,915 crore to PSBs during 2015-16 and 2016-17 based on quantitative analysis of growth and compliance levels,” the minister said.
Earlier the Press Trust of India (PTI) has reported that the government plans to consolidate public sector banks to create 3 to 4 global-sized banks like the State Bank of India. Read more about it here.