Canara Bank has achieved a remarkable feat by maintaining its position as the leading public sector bank in lending to state-owned corporations and Public Sector Undertakings (PSUs) for the fifth consecutive year. According to the Finance Ministry’s response to queries by MP Velusamy P, Canara Bank’s lending to government-backed entities reached an impressive ₹187,813 crore during the fiscal year 2022-23 (FY23), reflecting an 11% increase compared to the previous fiscal year.
Dominance in Lending and Financial Strength
Canara Bank’s commitment to supporting state-run public sector enterprises and corporations is unparalleled, constituting over 45% of the total lending by all public sector banks. This exemplifies the bank’s robust financial strength and unwavering dedication to fulfilling the financial requirements of government-backed entities.
Top Lenders to State PSUs and Corporations
Here are the top lenders to State PSUs and corporations during FY23:
| 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 |
Performance of Other Banks
Punjab National Bank (PNB) secured the second position with a total loan disbursal of ₹70,143 crore to State and Union Territory-owned entities, experiencing a decline compared to the previous fiscal year.
Despite being the largest public sector bank in the country, State Bank of India (SBI) witnessed a decrease in lending to state enterprises, with a disbursal of ₹66,523 crore during FY23.
Bank of Baroda’s lending to corporations and State PSUs also decreased significantly to ₹15,707 crore from ₹42,015 crore in the previous fiscal.
Lowest Exposure and Overall Lending Trends
Punjab & Sind Bank had the lowest exposure to State PSUs and corporations, with a lending of ₹88 crore, indicating a significant decrease from the previous year’s lending.
Overall, 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, possibly influenced by economic and market conditions during the period.
Lending to State Governments
Interestingly, nationalized banks did not disburse loans to State governments over the last five years, highlighting a specific trend in the lending practices of public sector banks concerning state governments.
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