22 July, New Delhi
Fourteen public sector banks out of 27 posted losses in the last financial year. The main reason for their losses was Asset Quality Review initiated by the Reserve Bank of India.
As a result, the banks had to suddenly make provisions for accounts categorized as non-performing assets under the exercise.
Stating this in the Lok Sabha Friday, Minister of State for Finance Santosh Kumar Gangwar revealed that the government has allocated 25 thousand crore rupees to these banks to strengthen their financial positions.
He hoped that the loss- making banks will tide over their shortfall and begin earning profit.