This Public Sector Bank was top lender to state-backed corporations and PSUs in FY23

Public Sector Banks (PSBs) lent ₹4.12 trillion to state-backed corporations and public sector undertakings during 2022-23, down from ₹4.93 trillion during the previous year, finance minister Nirmala Sitharaman informed Parliament in a written response on Monday.

Responding to questions by member of parliament, Velusamy P, Sitharaman informed the Lok Sabha that Canara Bank led the lending during 2022-23 to government backed entities at ₹187,813 crore during the recently concluded fiscal year, followed by Punjab National Bank ( ₹70,142.5 crore), State Bank of India ( ₹66,523.2 crore), Bank of India ( ₹25,147 crore), Bank of Baroda ( ₹15,706.8 crore), Union Bank of India ( ₹12,584.8 crore), Bank of Maharashtra ( ₹10,822.7 crore), Indian Bank ( ₹9,021 crore), Indian Overseas Bank ( ₹7,490 crore), Central Bank of India ( ₹3,949 crore), UCO Bank ( ₹2,939.4 crore), Punjab and Sind Bank ( ₹87.7 crore).

Meanwhile, the finance minister informed the Lok Sabha that public sector banks (PSBs) will have to take steps to adopt a focused approach on ease of service delivery and customer protection, follow regulatory norms, adopt robust risk management practices, focus on increasing rural, agriculture and sectoral credit to meet the Priority Sector Lending targets.

In  a meeting held between the top PSB bank executives and top finance ministry officials, including the finance minister, on 6 July, it was decided that the sponsor banks of the Regional Rural Banks (RRBs) will take steps for technological upgradation of the RRBs to make them more efficient, Sitharaman said in a written reply.

“Performance under PM SVANidhi scheme, which was started to support COVID affected street vendors to restart their businesses, was noted, wherein 50.57 lakh loans have been disbursed, amounting to ₹6,482 crore, to 38.5 lakh street vendors as on 20.7.2023," she said.

Financial performance of PSBs was also noted which showed that all the major financial parameters have significantly improved, she said.

The PSBs have posted record aggregate net profit of ₹1.04 trillion in FY2022-23, she added.

Meanwhile, Sitharaman also informed parliament that The National Asset Reconstruction Company Ltd (NARCL) has as of 17 July acquired three borrower entities -- Jaypee Infratech Ltd, SSA International Ltd, Helios Photo Voltaic Ltd-- with an aggregate debt exposure of ₹21,349 crore.

“NARCL has further informed that these assets have been acquired only in the fourth quarter of the financial year (FY) 2022-23, and no recovery has been made in these accounts as of 17.7.2023," she said.

“Further, in respect of one more account, i.e. SPML Infra Ltd, letter of approval for debt acquisition of ₹1,994.90 crore has been issued by the lenders, and in-principal approval for the government guarantee has also been issued," she added.

Sitharaman further added that comprehensive measures have been taken by the government and the Reserve Bank of India (RBI) to recover the bad debts, due to which scheduled commercial banks have recovered a total amount of ₹ 7.16 trillion (provisional data for FY 2022-23) during the last five financial years.