Four Indian state banks combined net loss of $1.74 billion fourth-quarter loss

An India Rupee note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration

Vastavam web: Four Indian state banks reported on Friday a combined net loss of 117.29 billion rupees ($1.74 billion) for the fiscal fourth quarter due to a jump in bad-loan provisions following a tightening of the Reserve Bank of India rules.Bengaluru-headquartered Canara Bank Ltd, the biggest of the four, said its net loss was 48.6 billion rupees for the three months to March 31, compared with a net profit of 2.14 billion rupees a year earlier.Indian banks, already burdened by a near-record 9.5 trillion rupees of soured loans as of last year, were expected to report a further rise in bad loans in the March quarter after the central bank withdrew half a dozen loan-restructuring schemes and tightened some rules in February.

New Delhi owns majority stakes in 21 lenders that account for the bulk of the sector’s bad loans, forcing the government to announce a $32 billion bailout package to help the lenders set aside funds for the soured loans and kickstart new lending.Allahabad, UCO and Dena also saw their bad loans and provisions for bad loans rise sharply in the quarter.