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Canara Bank topped the list of public sector banks with the highest lending to corporations and PSUs of States and Union Territories for the fifth year in a row.
This was revealed in a written statement of the Finance Ministry, in response to questions raised by MP Velusamy P.
According to government data, Canara Bank led the lending to government-backed entities, with a total disbursement of ₹187,813 crore in FY23. Lending in the recently concluded fiscal was 11 per cent higher than the ₹1,69,532 crore the state-run bank lent to government entities. Canara Bank’s lending to State-run public sector enterprises and corporations alone accounted for over 45 per cent of the total lending of all public sector banks.
Punjab National Bank was the second highest lender in the previous fiscal, with a total loan disbursal of ₹70,143 crore. However, the bank’s lending to State- and UT-owned entities have come down from ₹96,396 crore in FY22.
Interestingly, the country’s largest public sector bank, State Bank of India, lent ₹66,523 crore to State enterprises in the previous fiscal, down from ₹81,735 crore in FY22. Bank of Baroda’s lending to corporations and State PSUs also fell to ₹15,707 crore in the previous fiscal from ₹42,015 crore in FY22.
lowest exposure
Punjab & Sind Bank had the lowest exposure to State PSUs and corporations in FY23 at ₹88 crore, against a lending of ₹3,570 crore in 2021-22.
The total lending by 12 public sector banks to government entities fell to ₹4.12-lakh crore in FY23 from ₹4.93-lakh crore in FY22.
The nationalised banks have not disbursed loans to State governments in the last five years, the Union Finance Ministry added.
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