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Poor performance by public sector banks, says RBI report

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Reserve Bank of India New Delhi. Photo: UNI

[vc_row][vc_column][vc_column_text]The private sector banks and foreign banks earned net profits, but the public sector banks incurred a loss of Rs 180 billion

Parsa Venkateshwar Rao Jr[/vc_column_text][vc_column_text]The growth in the banking sector for 2015-16—according to RBI’s “Report on the Trend and Progress of Banking in India 2015-16”—fell to 7.7 per cent in 2015-16, from 9.7 per cent in 2014-15.

As the banks, especially the public sector ones, had to provide for the “delinquent loans”, the credit and advances, which is an indirect marker of economic activity, fell to a dismal 2.1 per cent in 2015-16 from 7.4 per cent in 2014-15.

Interestingly, the Current Account and Savings Account (CASA) deposits with private sector banks as well as foreign banks grew better than those with the public sector banks.  The growth of CASA deposits with private sector banks jumped to an impressive three per cent—from over 16 per cent to over 19 per cent.

While the Credit-Deposit (C-D) ratio of the banking sector as a whole remained static at 78 per cent, the C-D ratio of the private sector banks stood at 90.3 per cent.

The banking sector on the whole showed declining earnings on interest and non-interest incomes. It was mainly due to slowdown in the growth of credit. Though the sector is not in the red, profits fell by 60 per cent. The private sector banks and foreign banks earned net profits, but the public sector banks incurred a loss of Rs 180 billion, and net losses amounting to 148 per cent.

But the priority sector lending—which includes weaker sections, small and medium enterprises, agriculture and housing— showed a marked improvement, increasing from 9.3 per cent in 2014-15 to 16 per cent in 2015-16. The target for the priority sector lending was 40 per cent. The public sector banks achieved 39.3 per cent, private sector banks logged 45.1 per cent and foreign banks showed 35.3 per cent.

The recovery of non-performing assets (NPAs) for all the banks fell from Rs 307.92 billion in 2014-15 to Rs 227.68 billion in 2015-16. The public sector banks could recover only Rs 1,897.57 billon in 2015-16, compared to Rs 278.49 billion the previous year.

The report notes that recovery was better through the Lok Adalats and Debt Recovery Tribunals (DRTs) than through the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) channel. The recovery through SARFAESI reduced from Rs 256 billion in 2014-15 to Rs 131.79 billion in 2015-16.

Despite a slowdown in credit growth, the loan portfolio reveals an interesting profile. Loans in the housing sector accounted for 52 per cent, up by 16.4 per cent over the previous year, followed by personal loans, 29.8 per cent, which include educational loans, while auto loans stood at 11.1 per cent.

Meanwhile, the credit sensitive sectors, including capital and real estate, accounted for 20 per cent of the loans. Foreign banks lent 27.7 per cent, which is more than private banks, which stood at 26.3 per cent. The public sector banks loans in this sector were the lowest, at 16.9 per cent. An overwhelming chunk of the loans, 92.5 per cent, in this segment went to the real estate.

The ownership pattern of the banks shows that while the government maintains a majority stake in the public sector banks, 51 per cent, the non-resident shareholding in the PSBs, 11.9 per cent, contrasted with 72.7 per cent in the private sector banks.

Lead Picture: Reserve Bank of India New Delhi. Photo: UNI[/vc_column_text][/vc_column][/vc_row]

India News

Abhishek Banerjee says will not bow to BJP after nearly 11 hours of ED questioning

After spending nearly 11 hours before the Enforcement Directorate, TMC leader Abhishek Banerjee said he would not bow to the BJP and accused the ruling party of using investigative agencies for political purposes.

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Abhishek Banerjee

Trinamool Congress leader and Diamond Harbour MP Abhishek Banerjee on Tuesday said he would not bow to the BJP after spending nearly 11 hours being questioned by the Enforcement Directorate (ED) in connection with an ongoing investigation.

Speaking after the questioning, Banerjee alleged that central agencies were being used to target opposition leaders and asserted that he would continue his political fight despite what he described as sustained pressure.

The TMC leader has repeatedly maintained that investigations involving him are politically motivated, a charge he has made on several previous occasions while appearing before central agencies.

His appearance before the ED comes amid a period of heightened political activity and multiple investigations involving leaders in West Bengal. Recent days have also seen Banerjee face summons and questioning in separate matters by state investigative agencies.

After leaving the ED office, Banerjee reiterated that he would not be intimidated and said he remained committed to his political responsibilities. He also accused the BJP of attempting to weaken opposition parties through investigative action, an allegation that the BJP has rejected in the past.

The Enforcement Directorate has not publicly commented on Banerjee’s remarks. The investigation related to the questioning remains ongoing.

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India News

DMK attacks Rahul Gandhi, accuses him of weakening opposition unity

DMK has intensified its criticism of Rahul Gandhi, alleging that the Congress leader’s actions have weakened opposition unity and strained relations within the INDIA bloc.

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Rahul-Gandhi

The war of words between the DMK and Congress has intensified, with the DMK launching a strong attack on Leader of Opposition Rahul Gandhi and accusing him of contributing to divisions within the opposition alliance. The criticism comes amid strained ties between the two parties following their political split in Tamil Nadu.

According to the DMK, Rahul Gandhi’s political approach has weakened unity among opposition parties. The party’s IT wing mocked the Congress leader on social media, while an editorial published in the DMK’s official mouthpiece Murasoli questioned his recent remarks on opposition solidarity.

DMK questions Rahul Gandhi’s remarks on opposition unity

In its editorial, Murasoli argued that Rahul Gandhi was speaking about opposition unity despite, according to the DMK, contributing to disagreements among alliance partners in several states. The publication cited criticism directed at Congress by various opposition parties and suggested that the party’s actions had often created tensions within the INDIA bloc.

The editorial also referred to past political disputes involving Congress and Left parties, particularly in Kerala, claiming such episodes had raised concerns among opposition allies about Congress’s approach toward its partners.

Tamil Nadu political fallout adds to tensions

The attack comes after a major political realignment in Tamil Nadu. Following the 2026 Assembly elections, Congress ended its alliance with the DMK and joined the government led by Vijay’s Tamilaga Vettri Kazhagam (TVK). The move left the DMK in the opposition and significantly altered the political equation between the two former allies.

The DMK has alleged that Congress benefited from the alliance during the election and later abandoned its partner. The party’s editorial questioned whether assurances from Congress leadership would be trusted by alliance partners after the developments in Tamil Nadu.

Congress rejects allegations

Congress has not issued a detailed official response to the editorial, but party sources have rejected the allegations. According to the party, its decisions in Tamil Nadu were made in line with the mandate delivered by voters and were not intended to undermine either the DMK or the broader opposition alliance.

The latest exchange highlights growing strains between two key opposition parties even as leaders continue to stress cooperation on national issues. Just days earlier, Rahul Gandhi had said that the DMK remained aligned with the opposition on defending the “idea of India” despite political differences.

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Entertainment

Kumkum Bhagya actor Sanchita Ugale dies by suicide near Mumbai at 22

Television actor Sanchita Ugale, known for Kumkum Bhagya and Wagle Ki Duniya, died by suicide at her residence near Mumbai. Police have launched an investigation.

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Sanchita Ugale

Television actor Sanchita Ugale, known for her appearances in Kumkum Bhagya, Wagle Ki Duniya and Dilwali Dulha Le Jayegi, died by suicide at her residence in Nalasopara East near Mumbai on June 14. She was 22.

According to police officials, the incident took place at her home in Achole village, Nalasopara East. Authorities said Ugale had locked herself inside her bedroom and was later found hanging from a ceiling fan. Family members and local residents rushed her to a hospital, where doctors declared her dead.

Police have registered an Accidental Death Report (ADR) and launched an investigation into the circumstances surrounding her death. Officials said inquiries are underway and the exact reason behind the incident has not yet been established.

Career across television, OTT and films

Ugale had built a growing presence in the entertainment industry through television, streaming projects and films. Apart from Kumkum Bhagya and Wagle Ki Duniya, she played a lead role in Dilwali Dulha Le Jayegi. She also appeared in OTT projects such as Crime Aaj Kal and Silence 2.

The actor was also associated with the film Chhaava, which contributed to her growing recognition among audiences.

Last social media post draws attention

Following news of her death, social media users shared and commented on Ugale’s final Instagram post, which had been uploaded hours before the incident. The post showed the actor in traditional attire lip-syncing to a classic Bollywood song. Fans expressed shock and grief after learning of her death.

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