Over a dozen banks in India posted a 100% jump in their net non-performing assets (NPAs) in 2011-12, and the situation may worsen in 2012-13, according to NPAsource.com, a portal focusing on resolution of stressed assets.

Large banks like Central Bank of India, with over 400%, followed by Indian Bank (201%), Oriental Bank of Commerce (162%), Corporation Bank (119) and Punjab National Bank (118%) were amongst those banks which reported a 100% jump in their net NPAs during 2011-12.

Foreign banks like Bank of Bahrain & Kuwait (399%), Chinatrust Commercial Bank (269%), DBS Bank (232%) and Standard Chartered Bank (193%) too figured amongst the banks with very high increase in their net NPA levels, said Devendra Jain, Chairman and Managing Director, Atishya Group, owner of the portal.

The NPA scenario has worsened in the first half of 2012-13, with gross NPA growth rate at 45.7% being far higher than the growth in gross advances by banks in India. Some of India’s biggest banks which reported the highest increase in net NPAs in 2011-12, faced further deterioration in asset quality in the first half of 2012-13 too.

Central Bank of India’s net NPAs growth rate has again jumped by 224.5%, PNB’s has shot up by 277% and for Indian Bank it is a further jump of 111%.

The State Bank of India, too saw its net NPAs shoot up by 40% during the first half of 2012-13 as against an increase of 28% in the previous financial year ended March 31, 2012, he said.

As of September 30, 2012, net NPAs for 39 listed banks were higher by around Rs. 31,100 crore or 58% compared to the corresponding period of last year, the analysis by NPAsource.com shows. Of this, approximately 75% or Rs. 23,300 crore has risen during first half of FY2012-13.

Similarly gross NPAs as of September 30, 2012 were higher by Rs. 53,000 crore, or 46.7%, compared to the corresponding period of last year. Of this 66%, or Rs. 35,200 crore, has risen during first half of FY2012-13.

Even as the gross NPAs of all banks shot up by 45.7% for the first half ended September 30, 2012, the gross advances growth rate was just 15.9%, according to the recent data released by the RBI.

The analysis done by NPAsource.com shows that net NPAs of 39 listed banks, as of March 2012, were Rs 61,380 crore which have risen to Rs 84,680 crore in September 2012, a growth of 38%. Similarly, gross NPAs as of March 2012 were Rs. 1,31,400 crore, which have risen to around Rs. 1,66,600 crore as of September 2012, a growth of 27%.

(This article was published on January 24, 2013)
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