Photo: Pradeep Gaur/MintBetween 26 October, a day after the government announced a Rs2.11 trillion capital infusion into public sector banks (PSBs), and 8 March, shareholders of these banks have lost Rs1.56 trillion in combined market value. Five PSBs that reported profits are Indian Bank, Canara Bank, Bank of Baroda, Vijaya Bank and Punjab National Bank, which is now neck-deep in a $2 billion letter of undertaking fraud. At least six more banks have more than 15% but less than 20% gross bad loans and eight between 10% and 15%. Including the private banks (and excluding foreign banks), the industry’s gross bad loans in December were to the tune of Rs8.86 trillion. In the September 2015 quarter, only two PSBs had made losses (Bank of India and Indian Overseas Bank).

Source: Mint March 11, 2018 18:56 UTC