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All the data you wanted on banks
on Co-operative banks
of PSU, Foreign & Private banks
are back on the high growth path with healthier bottomlines. But
public sector banks the king of the heap faltered
on profits, reports B G Shirsat
the good news. After more than a decade, the Kolkata-based United
Bank of India (UBI) paid dividends to its shareholders after reporting
Rs 204.57 crore net profit. The Chennai-based Indian Bank also followed
suit, riding high on its Rs 500 crore-plus bottomline.
net and gross non-performing assets (NPAs) as a percentage of advances
have also come down for all commercial banks. In the public sector,
only Dena Bank now has over 3 per cent net NPAs. Four others
Central Bank of India, Bank of Maharashtra, Punjab & Sind Bank
and Uco Bank have 2-3 per cent NPA levels. As many as 13
public sector banks have less than 1 per cent NPAs.
three banks net NPAs have risen during the year, that too
marginally. For instance, Punjab National Banks net NPA rose
from 0.20 per cent to 0.29 per cent and that of Vijaya Banks
from 0.59 per cent to 0.85 per cent. In the case of State Bank of
Indore, the net NPA level has almost doubled from 1 per cent to
1.83 per cent, but on a very low base.
picture is more or less similar in the private banking segment.
Seven of them have less than 1 per cent net NPAs and another eight
between 1 per cent and 2 per cent. Development Credit Bank has the
highest level of bad loans at 4.50 per cent. At least five private
banks, including IndusInd Bank, have more than 2 per cent NPAs.
bad loans indicate the health of the banks, the bottomline growth
has actually signalled a upturn in their performance. Buoyed by
retail loan growth, the banking sector posted 16.84 per cent growth
in net profit against 9.14 per cent decline in 2004-05, which was
marked by a reversal in the interest rate cycle.
5 PUBLIC BANKS
Bank of India
5 PUBLIC BANKS
Bank of India
the bad news. Public sector banks remained a drag with just 5.57
per cent growth in net profit. In contrast, private banks
average net profit rose by over 41 per cent and that of foreign
banks by 54.76 per cent.
public sector banks reported a drop in net profits and, in some
cases, the slide was very sharp. At least five of them saw a second
successive drop in net profit growth in as many years. These are
Andhra Bank, Bank of Maharashtra, Central Bank of India, Oriental
Bank of Commerce, UCO Bank, United Bank India, Union Bank, Vijaya
Bank and State Bank of Bikaner & Jaipur.
some, the drop in net profit growth was very sharp. For instance,
Bank of Maharashtras net profit was down from Rs 177 crore
in 2004-05 to Rs 51 crore in 2006-06.
the case of Vijaya Bank, it was down to Rs 127 crore from Rs 381
crore. Central Bank and United Bank of India have also reported
a substantial drop in their bottomlines.
Central Bank, it was a big drop from Rs 357 crore to Rs 257 crore,
while United Bank of Indias bottomline slipped from Rs 300
crore to Rs 205 crore.
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