Net non-performing assets (NPAs) or bad loans of 39 banks increased by a negligible 0.8% or Rs 750 crore only in the fourth quarter of 2012-13. This is on the back of high provisioning according to a study done by NPAsource.com, a portal which focuses on resolution of stressed assets.
As on December 31, 2012, net NPAs of 39 listed banks stood at Rs 92,075 crore, which rose to Rs 92,825 crore as on March 31, 2013. But, for the full year ended March 31, 2013 net NPAs were at Rs. 92,825 crore which is higher by 51.2% as against net NPAs of Rs. 61,381 crore as of financial year 2012 end.
According to NPAsource.com study, gross NPAs of these 39 listed banks stood at Rs. 1,79,431 crore as on March 31, 2013, as against Rs. 1,78, 544 crore as on December 31, 2012, a rise of Rs 887 crore during fourth quarter. During 2012-13, gross NPAs of these 39 banks rose by 36.1%, while net NPAs rose by 51.2%.
Out of the total forty listed banks, thirty nine banks have declared results so far. Of the banks that have declared results, eight banks have reported more than Rs 100 crore reductions in net NPAs during fourth quarter. These eight banks together accounted for drop of around Rs. 5,645 crore in their net NPAs during fourth quarter.
State Bank of India reported the biggest drop of around Rs. 3,400 crore during the fourth quarter.
DK Jain, CMD, Atishya Group, owner of portal NPAsource.com says, “The study shows banks are working hard on improving the asset quality. With the interest rates expected to come down, the next few quarters may see a slowdown in the growth rate of NPAs. But, pressure on NPAs, especially for public sector banks will continue as more loans become NPAs due to the overall slowdown in the Indian and global economy."
