The bad loans of listed banks rose by 50 per cent at Rs 30,840 crore in the first nine months of the current financial year ended December 31, 2012, according to NPAsource.com, an online portal, which focuses on resolution of stressed assets.
The net non-performing assets (NPAs) of 40 listed banks rose to Rs 92,398 crore as on December 31, 2012, from Rs 61,558 crore as on March 31, 2012, the portal said.
Devendra Jain, Chairman and Managing Director, Atishya Group, owner of portal NPAsource.com said, “We believe the net NPAs of these listed banks will cross the Rs 1 lakh crore-mark as on March 31, 2013. However, it is likely that from the next financial year the NPAs in the Indian banking sector may come under control if interest rates begin to go down.”
According to the portal, “Of the 40 listed banks, 16 have reported more than a 50 per cent jump in net NPAs during these nine months. These 16 banks together accounted for more than 80 per cent or Rs 25,000 crore of incremental net NPAs.”
The net NPAs in State Bank of India, Punjab National Bank and Bank of Baroda rose by 60 per cent, 70 per cent and 118 per cent respectively. These three banks accounted for close to 47 per cent (Rs 14,500 crore) of incremental net NPAs.
“These figures show the Herculean task the banking sector faces even as the industry and regulators put in place measures to control a further increase in NPAs. Our data shows that during the October-December 2012 quarter, net NPAs of these banks rose by 9 per cent (Rs 7,400 crore),” Jain said.