The net non-performing assets (NPAs) or bad loans of 40 listed banks jumped by 38 per cent (around Rs 35,424 crore) in the first six months of the current financial year ended September 30, 2013, according to a study done by NPAsource.com, an online portal that focuses on the resolution of stressed assets.
The net NPAs of 40 listed banks rose to Rs 1,28,533 crore as on September 30, 2013, from Rs 93,109 crore as on March 31, 2013.
Of the 40, about 14 banks have reported more than a 50 per cent jump in net NPAs during the six months. According to the portal’s analysis, the share of the top ten banks in net NPAs has come down to 68 per cent in September from 70 per cent in March 2013. Also, the NPAs of seven banks was higher than 3.5 per cent as on September 30, 2013.
Top public sector banks such as State Bank of India, Bank of Baroda, Punjab National Bank, Central Bank, IDBI Bank and Union Bank have all reported more than a 30 per cent rise in net NPAs during this period.
Devendra Jain, CMD of Atishya Group, the owner of portal NPAsource.com said, “Net NPAs in the banking system are likely to touch Rs 1.5 lakh crore by March 2014 as two more quarters remain in the current fiscal year and the situation is worsening every quarter.
“With interest rates expected to remain high at least for the remaining fiscal and the Indian economy and corporates in poor shape, banks have a tough road ahead. Further pressure on NPAs will come in next two quarters as many restructured loans of last year will get converted to NPAs,” Jain said.
Gross NPAs as on September 30, 2013, stood at Rs 2.29 lakh crore, 27 per cent higher when compared to Rs 1.80 lakh crore as of March 31, 2013, for these 40 listed banks. “It may be noted that the growth rate of net NPAs at 38 per cent was significantly higher than the 27 per cent growth rate for gross NPAs,” Jain added.
According to NPAsource.com, the gross NPAs of listed banks has doubled since September 30, 2011, while the net NPAs have risen by 2.4 times or 140 per cent during the same period.