State-owned bank’s losses increase in Q2 due to bad loans

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Though banks are reaching some sort of stability following the recent provisions by the Government of India to help banks focus on their lending requirements, public sector banks reported net losses amounting to Rs.42.84 billion. In addition, state-owned banks posted net losses amounting to Rs.147.16 billion in the July-September quarter of FY 2018-2019. The net losses of state-owned banks, which has increased by more than threefold, was due to bad loans and non-performing assets.

Punjab National Bank-Net Losses
State-owned bank’s losses increase in Q2 due to bad loans

As already mentioned, with regard to net losses, the net losses of state-owned banks reduced by about Rs.20 billion, as they posted net losses of Rs.147.16 billion in Q2 as compared to Rs.166.15 billion in Q1 of FY 2018-2019.

Amongst the banks, fraud-hit Punjab National Bank posted the biggest losses in Q2 in the tune of Rs.45.32 billion, while the bank posted a profit of Rs.5.61 billion by the end of Q2 last financial year. Other than Punjab National Bank, IDBI Bank reported a net loss of Rs.36.03 billion in Q2 of FY 2018-2019, while Allahabad Bank posted a net loss of Rs.18.23 billion.

Source: Business Standard

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