State-run banks prune bad loans

The average net non-performing assets (NPA) of listed public sector banks has fallen to 1.11 per cent at the end of September 2006 from 1.19 per cent a quarter earlier and 1.33 per cent at the end of 2005-06.

Eleven PSBs now have less than 1 per cent net NPAs compared with 10 on March 31, 2006. Of the 11 banks, Andhra Bank has lowest NPA of 0.10 per cent followed by Punjab National Bank (0.18 per cent), State bank of Mysore (0.38 per cent), Corporation Bank (0.48 per cent) and Oriental Bank of Commerce (0.50 per cent).

Collectively, the net NPAs of banks have been reduced by Rs 150 crore to Rs 11,162 compared with Rs 11,012 crore during the quarter ended June 2006. The average NPA decline during the quarter ended September 2006 was largely on account of an 8 per cent increase in total advances.

PNB's net NPAs declined by 45 per cent from Rs 266 crore to Rs 145 crore. State Bank of Mysore had net NPAs of Rs 71 crore and Vijaya Bank Rs 110 crore.

On the other hand, net NPAs of Andhra Bank increased to Rs 22.59 crore at the end of the second quarter of 2006-07 from Rs 15.87 a quarter earlier and that of Indian Overseas Bank to Rs 230 crore from Rs 177 crore.

Dena Bank reduced its net NPAs to 2.89 per cent from 3.25 per cent a quarter ago, but continues to be the PSB bank with the highest net NPA level.

Six other banks "" Bank of Maharashtra, SBI, State Bank of Travancore, Bank of India, State Bank of Bikaner & Jaipur, Union Bank of India "" have net NPA levels between 1-2 per cent.

Syndicate Bank, Indian Overseas Bank, Andhra Bank, Union Bank of India and Canara Bank, have registered marginal rise in net NPAs during the second quarter.