PSU banks in trouble: Nine banks report net losses of Rs 14,000 crore so far

On Wednesday, Punjab National Bank , the third largest public lender in the country, shocked Dalal Street after it posted the biggest net loss in India's banking history at Rs 5,367 crore.

After PNB's results, the total losses of nine out of 18 public sector banks who have declared their March earnings till May 17 now stands at a whopping Rs 14,808 crore.

The crisis in the banking sector is hitting new lows every day after the Reserve Bank of India's decision to force banks to acknowledge their bad assets in their balance sheets by March 2017.

Aside from PNB Bank of Baroda gave a similar jolt to the Street when it reported quarterly losses of Rs 3,230 crore on Friday. The third highest loss figure this quarter has come from Syndicate Bank which reported losses of Rs 2,158 crore on Tuesday.

The PSU banking sector has been the biggest drag on the market so far this month with the Nifty PSU Bank index slumping 6 per cent in the past five days.

The total amount of March quarter losses could still rise with six PSBs scheduled to report their numbers in the coming week with the mother of them SBI yet to come.

Image credit: Indiatimes