Major Indian Public Sector Banks report decline in the profits
Bank of Baroda’s, the second largest public sector bank’s fourth quarter profits are down by nearly 50% to 598 crore rupees from 1157 crore rupees reported a year earlier.
Indian Overseas Bank’s fourth quarter profit has reduced by 86.8% to Rs 35.5 crore compared to Rs 268 crore crore year-ago.
Punjab National Bank has also reported 62% decline in net profit to Rs306 crore in the fourth quarter ended March 31.
Union Bank of India reported that its fourth-quarter profit has dropped 23% to Rs.443.77 crore .
The common reason by banks for increase in non-performing assets (NPAs) is attributed to - money stuck in infrastructure projects, some agricultural loans hit by unseasonal rains and the impact of higher provisioning for wages following the recent wage accord in the banking industry.
Reserve Bank of India (RBI) has cut the repo rate by 50 basis points to 7.5 per cent since January 2015. But Indian banks have not passed on that benefit to the borrowers. For example State Bank of India has cut lending rates by just 15 basis points.
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