NEW DELHI: Government-owned banks are busy cleansing their books and the dirt that’s coming off them is enough to swallow thousands of houses and bury dreams of smarter cities.
Losses of public sector banks (PSBs) upload as much as over Rs 79,000 crore and dangerous loans to a whopping Rs eight.6 lakh crore for the fiscal yr 2017-18 -- both easiest ever in the nation's banking history.
PERSPECTIVE
Size of the 2017-18 annual finances was once Rs 24.four lakh crore. Giving unfastened LPG connections required simply Rs 13,000 crore. The whole annual finances for agriculture is Rs 58,000 crore. All central sector schemes upload as much as Rs 7.1 lakh crore - not up to the outlet created by way of PSU banks.
HOW IS YOUR MONEY AFFECTED?
Last yr, the federal government introduced a recapitalisation package of Rs 2.11 lakh crore for PSBs - Rs 90,000 crore for 2017-18 and the remainder for this yr. The losses mean taxpayer cash will simply end up overlaying losses as an alternative of serving to those banks get well and successful.
WHY THIS SITUATION?
Banks have been offering for dangerous loans in the remaining two years. The first push got here in March 2016 when the then Reserve Bank of India (RBI) governor Raghuram Rajan made classification of loans as non-performing belongings (NPAs) stricter after which in February this yr when his successor Urjit Patel forced banks to cancel all restructuring schemes.
WHAT ABOUT PRIVATE BANKS?
They made a web profit of Rs 42,000 crore in the similar yr.
Losses of public sector banks (PSBs) upload as much as over Rs 79,000 crore and dangerous loans to a whopping Rs eight.6 lakh crore for the fiscal yr 2017-18 -- both easiest ever in the nation's banking history.
PERSPECTIVE
Size of the 2017-18 annual finances was once Rs 24.four lakh crore. Giving unfastened LPG connections required simply Rs 13,000 crore. The whole annual finances for agriculture is Rs 58,000 crore. All central sector schemes upload as much as Rs 7.1 lakh crore - not up to the outlet created by way of PSU banks.
HOW IS YOUR MONEY AFFECTED?
Last yr, the federal government introduced a recapitalisation package of Rs 2.11 lakh crore for PSBs - Rs 90,000 crore for 2017-18 and the remainder for this yr. The losses mean taxpayer cash will simply end up overlaying losses as an alternative of serving to those banks get well and successful.
WHY THIS SITUATION?
Banks have been offering for dangerous loans in the remaining two years. The first push got here in March 2016 when the then Reserve Bank of India (RBI) governor Raghuram Rajan made classification of loans as non-performing belongings (NPAs) stricter after which in February this yr when his successor Urjit Patel forced banks to cancel all restructuring schemes.
WHAT ABOUT PRIVATE BANKS?
They made a web profit of Rs 42,000 crore in the similar yr.
Public sector banks lost Rs 9 crore every hour in 2017-18
![Public sector banks lost Rs 9 crore every hour in 2017-18]()
Reviewed by Kailash
on
May 30, 2018
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