PSUs: Power Of A Collective
New Delhi   20-Dec-2016



The Indian government by virtue of its majority ownership in public sector companies, including banks and oil marketers, has become richer by Rs 1,44,637 crore in 2016 compared to the previous year. The market value of most public sector units (PSUs) has risen in the range of 0.31 per cent to 136 per cent, improving their respective positions in the 2016 BW Businessworld Super Rich list. While mammoths like Oil and Natural Gas Corporation (ONGC), Coal India and State Bank of India (SBI) continued to dominate the rankings, ONGC jumped to the top slot with a current net worth of Rs 1,64,092 crore, edging past Coal India, last year's topper. Market cap of ONGC appreciated 21.32 per cent during 2015-16, while those of Coal India dipped 7.52 per cent to Rs 1,52, 414 crore from Rs 1,64,815 crore in 2014-15.

SBI retained the third position with a market value of Rs 1,22,088 crore, registering a gain of 13.06 per cent. The government currently owns with 79.65 per cent, 68.93 per cent and 61.22 per cent in Coal India, ONGC and SBI, respectively.

The value of oil PSUs such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) also soared in the year under review, increasing the government wealth by over Rs 50,000 crore. Indian Oil, the largest oil marketer by revenue, was ranked fifth in the rich PSU list with a net worth of Rs 82,976 crore, up 45.08 per cent over the previous year. The net worth of Bharat Petroleum and Hindustan Petroleum also grew 47.53 per cent and 73.58 per cent to Rs 49,847 crore and Rs 23,251 crore respectively.

Stocks of PSUs like NTPC (Rs 88,441 crore, up 15.63 per cent), Power Grid Corporation (Rs 54,962 crore, up 36.95 per cent), Gail India (Rs 29,385 crore, up 36.57 per cent), NHPC (Rs 21,060 crore, up 33.72 per cent) and Petronet LNG (Rs 14,214 crore, up 111.58 per cent) performed extremely well this year. Besides SBI, other public sector banks also created wealth for the government. Punjab National Bank, the second largest PSU bank with a current net worth of Rs 19,015 crore on the back of a 24 per cent growth in value over last year, is ranked No. 15 in this year's PSU rich list.

Bank of Baroda, ranked No. 12 with a current net worth of Rs 22,290 crore, however, saw a 7.3 per cent decline in market cap in 2016.

All other government banks except Union Bank of India, Andhra Bank and Bank of Maharashtra have grown in terms of market value over the previous year.

Other PSUs, including Bharat Heavy Electricals, Steel Authority of India, Container Corporation of India, Rural Electrification Co., Rashtriya Chemicals and Fertilisers and Shipping Corporation of India had a poor show as their stocks recorded negative growth during the year.

Hindustan Fluorocarbons, a subsidiary of Hindustan Organic Chemicals, recorded the highest growth in net worth among the PSUs although on a very small base. The stock jumped 136 per cent taking the market value to Rs 17 crore. At the other end was Oil India, ranked 17 with a net worth of Rs 17,267 crore, which grew just 0.31 per cent over the previous year.