Canara Bank Tops Public Sector Banks in Lending to State PSUs and Corporations for Fifth Consecutive Year: In a remarkable achievement, Canara Bank has once again emerged as the leading public sector bank in lending to state-owned corporations and Public Sector Undertakings (PSUs) for the fifth consecutive year. The Finance Ministry, in response to queries raised by MP Velusamy P, disclosed that Canara Bank’s lending to government-backed entities reached an impressive ₹187,813 crore during the fiscal year 2022-23 (FY23). This was an 11% rise over the previous fiscal year, when the bank disbursed 1,69,532 crore to government entities.
Daily Current Affairs Quiz: July 2023
Canara Bank’s Dominance in Lending:
Canara Bank’s dedication to assisting state-run public sector firms and corporations is unrivalled, accounting for more than 45% of overall loans by public sector banks. This demonstrates the bank’s robust financial strength and dedication to fulfilling the financial needs of government-backed entities.
Here’s a table representing the top lenders to State PSUs and corporations during the fiscal year 2022-23:
| Rank | Bank | Total Loan Disbursed (in ₹ crore) |
| 1 | Canara Bank | 187,813 |
| 2 | Punjab National Bank | 70,143 |
| 3 | State Bank of India | 66,523 |
| 4 | Bank of India | 25,147 |
| 5 | Bank of Baroda | 15,707 |
| 6 | Union Bank of India | 12,585 |
| 7 | Bank of Maharashtra | 10,823 |
| 8 | Indian Bank | 9,021 |
| 9 | Indian Overseas Bank | 7,490 |
| 10 | Central Bank of India | 3,949 |
| 11 | UCO Bank | 2,939 |
| 12 | Punjab and Sind Bank | 88.7 |
Punjab National Bank’s Performance:
With a total loan disbursal of 70,143 crore in the previous fiscal year, Punjab National Bank ranked second in terms of lending to State and Union Territory-owned enterprises.However, the bank experienced a decline in lending compared to FY22 when it disbursed ₹96,396 crore.
State Bank of India’s Lending Activity:
Despite being the country’s largest public sector bank, State Bank of India’s loan to state firms fell from 81,735 crore in FY22 to 66,523 crore in FY23. The decline may be attributed to various factors affecting the bank’s lending policies during the said period.
Bank of Baroda’s Reduction in Lending:
Bank of Baroda also witnessed a significant reduction in lending to corporations and State PSUs during FY23. The total loan disbursed in the previous fiscal amounted to ₹15,707 crore, down from ₹42,015 crore in FY22.
Lowest Exposure:
On the other end of the spectrum, Punjab & Sind Bank had the least exposure to state PSUs and companies in FY23, lending 88 crore, a considerable fall from the previous year’s lending of 3,570 crore.
Overall Lending Trends:
The combined lending by 12 public sector banks to government entities declined to ₹4.12-lakh crore in FY23 from ₹4.93-lakh crore in FY22. This reduction may reflect various economic and market conditions during the period.
State Governments’ Loans:
In an interesting observation, the Union Finance Ministry disclosed that nationalized banks did not disburse loans to State governments in the last five years. The information reveals a specific tendency in public sector banks’ lending practises to state governments.