Comments
The non-performing assets (NPA) of the banking sector rose sharply to 1.28 per cent in 2011-12 from 0.97 per cent a year ago due to high interest rate and slowdown in the economy.
The NPAs or bad loans of the public sector banks rose to 1.53 per cent in 2011-12, up from 1.09 per cent in the previous year, said the latest RBI report.
As per the Profile of Banks: 2011-12 released by the RBI, the NPA for India’s largest public sector lender SBI along with its associates rose to 1.76 per cent from 1.49 per cent in 2010-11.
SBI’s net NPA rose to 2.22 per cent in the first quarter of the current fiscal from 1.61 per cent a year earlier.
However, private sector banks managed to reduce their NPAs in 2011-12 to 0.46 per cent from 0.56 per cent in 2010-11, it said.
Non-performing assets of old private sector banks increased marginally to 0.58 per cent during the year from 0.53 per cent in the previous fiscal.
Also, foreign sector banks had their NPAs below one per cent at 0.61 per cent, down from 0.67 per cent in 2010-11, the RBI said.
The RBI, however, has asked the banks to improve their ability to manage stressed assets.
Banks, specifically public sector, have been reporting higher NPAs in their books because of continued slowdown in the economic activities on the back of rising interest rate regime.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.