These losses are only due to frauds of Rs 1 lakh or more. Some of these cases are being probed by investigating agencies.
In the latest development, the Central Bureau of Investigation, which is also probing the Kingfisher Airlines case, arrested a chartered accountant of Udaipur...
and a businessman of Jaipur in an on-going investigation of a case relating to an alleged loss of approximately Rs 1,000 crore to Syndicate Bank.
Syndicate Bank, headquartered in Karnataka, lost Rs 1,133.31 crore and has reported 445 cases of fraud involving Rs 1 lakh or more.
The State Bank of India (SBI) and its five associate banks have lost a total of Rs 5,881.20 crore in the said period. SBI, which reported 2,049 fraud cases, lost the majority of this money (Rs 3,461.74 crore), followed by State Bank of Hyderabad which lost Rs 876.43 crore and reported 139 fraud cases.
IDBI, which is also being probed in the Kingfisher Airlines case, has lost Rs 1,350.69 crore in the said period, while reporting 388 fraud cases.
The four banks headquartered in Karnataka -- Syndicate, Corporation, Canara and Vijaya -- have lost a cumulative 4,342.10 crore, with the highest lost by Canara BankBSE -1.06 % (Rs 1,309.14 crore), which reported 334 cases of frauds.
The CBI, which is investigating the Syndicate Bank case, has registered a case under several sections of the IPC besides the Prevention of Corruption Act, indicating involvement of insiders.
The highest loss was reported in 2014-15 even as the year recorded the least number of fraud cases. PSU banks lost Rs 11,022.32 crore go down to 2,166 frauds.
In another case that year, an MD of a private firm from Bhopal was arrested after he went absconding in a case relating to alleged loss caused to State Bank of Indore. The CBI had said that he had conspired with officials at the bank and dishonestly & fraudulently obtained credit facilities on the basis of fake collateral securities.
Bank of Baroda has come out with the worst set of quarterly numbers reflecting the poor asset quality of PSU banks. The bank posted a quarterly net loss of Rs 3,342 crore, the largest loss by a bank in the Indian banking history, as compared to a profit of Rs 333 crore in the same period of last year.
The loss was driven by a 463 per cent increase in provisions towards bad loans which rose from Rs 1,149 crore in the previous quarter to Rs 6,474 crore. BoB was functioning without a full-time chairman and managing director for almost 15 months after its former CMD SS Mundra was selected as the RBI Deputy Governor.
However, a tax write-back of Rs 1,118.37 crore proved to be a big help in limiting the losses. Otherwise, the loss would have been even higher.
With this, nine PSU banks have made a combined loss of Rs 11,251 crore for the December quarter. The RBI had asked PSU banks to treat some troubled accounts as official bad loans and make adequate provisions. Among the worst performers, IDBI Bank made a loss of Rs 2,184 crore, IOB Rs 1,425 crore loss and Bank of India Rs 1,505 crore.
BoB’s total income declined to Rs 11,726.95 crore in the quarter, from Rs 12,300 crore in the previous quarter.
BoB’s asset quality took a big plunge during the quarter. The bank’s gross non-performing assets (NPA) rose 64.2 per cent QoQ to Rs 38,934 crore (9.68 per cent) while net NPA rose 70 per cent to Rs 21,806 crore.
“Fresh slippage during the quarter was at Rs 15,603 crore. Total restructured standard assets of the bank decreased from Rs 22,930 crore as on September 30, 2015 to Rs 17,135 crore as on December 31, 2015,” the bank said.
During the quarter, as a part of asset quality review (AQR) conducted by RBI, the bank has been advised to reclassify or make additional provisions in respect of certain advance accounts over two quarters ending December 2015 and March 2016. “The bank has accordingly implemented the RBI direction in this quarter,” BoB managing director PS Jayakumar and chairman Ravi Venkatesan said in a statement. “The bank has made provision of 20 per cent on the secured sub-standard advance as against the regulatory requirement of 15 per cent,” BoB said. Further, the bank has done an extensive review of the advance portfolio and has made additional provision for NPAs. Bank of Baroda’s capital adequacy ratio under Basel III norms stood at 12.18 percent.
During the third quarter, the NPAs of the public sector banks increased a lot posing serious problem to the lenders, while others like SBI and PNB witnessed sharp erosion in profits.
Bank of Baroda, the worst hit, posted a quarterly net loss of Rs 3,342 crore, the largest loss by a bank in the Indian banking history, as compared to a profit of Rs 333 crore in the same period of last year. The loss was driven by a 463 per cent increase in provisions towards bad loans which rose from Rs 1,149 crore in the previous quarter to Rs 6,474 crore. BoB was functioning without a full-time chairman and managing director for almost 15 months after its former CMD SS Mundra was selected as the RBI Deputy Governor.
Others public sector lenders like Central Bank of India, Allahabad Bank and Dena Bank also reported losses while Punjab National Bank posted a sharp decline in profit for the third quarter of 2015-16. Increase in provisioning due to sharp rise in bad loans resulted in squeezing of bottomlines. Central Bank of India today reported a loss of Rs 836.62 crore for October-December 2015-16, against a profit of Rs 137.65 crore in the third quarter of the previous fiscal.
Finance Minister Arun Jaitley in his Union Budget allocated less than expected capital infusion of Rs 25,000 crore to recapitalise PSBs.
Last year, NDA government had announced a revamp plan 'Indradhanush' to infuse Rs 70,000 crore in public sector lenders over four years, while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirements in line with global banking risk norms Basel III.