Gross non-performing assets (NPAs) of 40 listed banks shot up 35.2 per cent or Rs 63,386 crore to cross the Rs 2.43 lakh crore mark in the nine months ended December 31, 2013.
This jump of 35.2 per cent was much higher than the 27 per cent rise witnessed in the first six months of 2013-14, according to a study done by NPAsource.com, a first-of-its-kind portal which focuses on resolution of stressed assets.
Ten out of the 40 listed banks accounted for nearly 70 per cent of the total gross NPAs. State Bank of India at 28 per cent (Rs 67,799 crore) has the largest share in total gross NPAs of the 40 listed banks, followed by Punjab National Bank with 7 per cent share (Rs 16,596 crore) and Bank of Baroda and Central Bank of India with 5 per cent share each.
As of December 31, 2013, Bank of Maharashtra posted the largest increase in gross NPAs of 209 per cent at Rs 3,516 crore from Rs 1,138 crore as of March 31, 2013. United Bank reported a 188 per cent jump in gross NPAs at Rs 8,546 crore at the end of Q3.
Eleven banks posted a 50 per cent plus growth in their gross NPAs, Devendra Jain, Chairman and Managing Director, Atishya Group, the owner of portal NPAsource.com said here on Tuesday.
“There is no respite for banks in India from the onslaught of higher interest rates and slowdown in the Indian economy leading to further increase in loans turning bad from corporate as well as retail segments. The fourth quarter of 2013-14 will continue to be bad for banks on the NPAs front, but most banks will resort to higher levels of provisioning so as to bring down their net NPA levels.”
The first quarter of next financial year, too, will continue to be bad for banks with regard to NPAs. High concentration of banks’ debt to the top 50-100 corporates is also a major concern area.
Growth in net NPAs at 49 per cent for the nine months ended December 31, 2013 against a 38 per cent rise in the first six months of 2013-14 is also alarming. Net NPAs have gone up to Rs 1.38 lakh crore as of Q3 end from Rs 93,116 crore at the end of March 31, 2013.