Over a dozen banks in India posted 100% plus jump in net NPAs - NPAsource.com

More than a dozen banks reported an over 100% increase in their net non-performing assets (NPAs) in 2011-12 and the situation may get worst in current financial year 2012-13 according to analysis done by NPAsource.com, a unique and first of its kind portal, which focuses on resolution of stressed assets. Large banks like Central Bank of India (CBI) at over 400%, Indian Bank with 201%, Oriental Bank of Commerce (OBC) at 162%, Corporation Bank with 119% and Punjab National Bank (PNB) with 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.

Commenting on the data Mr. Devendra Jain, CMD of Atishya Group, owner of portal NPAsource.com said, "The NPA scenario has got worst in the first half of current financial year, 2012-13, with gross NPAs 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%, that of PNB's has shot up by 277% and for Indian Bank it is a further jump of 111%. India's largest bank, the State Bank of India too saw its net NPAs shoot up by 40% in net NPAs during the first half of 2012-13 as against an increase of 28% in the previous financial year ended March 31, 2012."

As of September 30, 2012, net NPAs for 39 listed banks were higher by around Rs. 31,100 crore or 58% compared to 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 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 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 and this has risen to Rs. 84,680 crore as of September 2012, 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, growth of 27%.

Source : Equity Bulls

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