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)|
|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|
|9||Indian Overseas Bank||7,490|
|10||Central Bank of India||3,949|
|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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State-Owned Corporations and PSUs – FAQs
Q1: How has Canara Bank performed in lending to state-owned corporations and PSUs?
Ans: For the fifth year running, Canara Bank has surpassed all other public sector banks in its loans to PSUs and state-owned businesses. An amazing 187,813 crore was disbursed by the bank to government-backed enterprises during FY23, representing an 11% increase from the prior fiscal year.
Q2: What are the key features of Canara Bank’s lending performance during FY23?
Ans: Lending by Canara Bank to firms supported by the government was 187,813 crore in FY23, a significant 11% rise from the prior fiscal year. This result highlights the bank’s ongoing dedication to assisting state-run businesses.
Q3: What is the overall trend in lending to government entities by public sector banks?
Ans: Twelve public sector banks collectively reduced their loans to government agencies from $4.93 billion in FY22 to $4.12 billion in FY23. The numerous market and economic circumstances that existed at the time might have an impact on this decline.