As stated to Financial Chronicle, K. R. Kamath, Chief Managing Director of Punjab National Bank (PNB) said that the provisioning for public sector banks increased due to several factors. He adds, “The income tax has been high, there was depreciation in investments as yields fell sharply on the last day, and because of non-performing loan accounts”.

State Bank of India, Punjab National Bank, corporation Bank and Bank of India have declared loans to Kingfisher Airlines. Union Bank has faced a downfall too in case of its profit. In this third quarter which ended in December last year, Union Bank has earned a net profit of 197 crore which is a straight 66 percent decrease if compared to the same quarter of last year, which was 579.57 crore.

Karthik Srinivasan, Senior Vice President at Internet Content Rating Association said, “The increase in provisioning for public sector banks was because of certain large corp[orate accounts in power sector, aviation and telecom being restructured or being classified as NPAs”.