Larger PSBs such as Canara Bank, IDBI Bank and Uco Bank are relatively on a weaker wicket on this parameter. IDBI Bank, for instance, has reduced its NPA provision cover at around 30.79% while Union Bank has increased it to 91.21% during 2007-08 from 59.71% during 2005-06. But Canara Bank decreased its provision cover to 26.36% in 2007-08 from 43.1% in the year 2005-06. SBI, the largest public sector bank,decreased its provision cover marginally from 48.99% to 42.17% during the period. Among the 24 PSBs, a significant decrease in provisioning cover during 2007-08 from the level of 2006-07 was observed in the case of Punjab & Sind Bank (-68.8%), State Bank of Hyderabad (-55.3%) and OBC (-41.1%). There was increase in provisioning cover in the cases of Union Bank (19.7%), SBI (14.2%) and Uco Bank (13.5%).
The provisioning cover of OBC decreased from Rs 1,941 crore during 2005-06 to Rs 1,225 crore during 2006-07 and further to Rs 721 crore during 2007-08.
Out of 24 PSBs, five banks namely Corporation Bank, Union Bank, Bank of
Maharashtra, Bank of India and State Bank of B&J showed a steady increase in loan loss cover during 2007-08 from the level of 2005-06. Fifteen PSBs have exceeded the average loan loss cover (52.06%) of 24 PSBs in 2007-08.