Provisioning woes take toll on 4 PSBs; Canara, Dena, United banks in red

Following the RBI's new rules for restructuring of such assets, all banks had to change the status of some of their standard stressed assets, classifying these as NPAs in the quarter

Hit by a sharp rise in provisions for loans gone bad, four public sector lenders — Canara Bank, Allahabad Bank, United Bank of India and Dena Bank – posted a net loss in the final quarter (January-March or Q4) of 2017-18.

Following the Reserve Bank of India’s new rules (issued February 12) for restructuring of such assets, all banks had to change the status of some of their standard stressed assets, classifying these as non-performing assets (NPAs) in the quarter. This pushed their tally and of the related provisioning.  

  

Canara, largest among these four, reported a net loss of Rs 48.6 billion,