Bad loans of listed banks shot up 35% in 9 months

Ten of the 40 listed banks account for nearly 70% of gross NPAs

Gross non-performing assets (NPAs) of 40 listed banks shot up by 35.2% or Rs 63,386 crore for the nine months ending December 2013 to cross the Rs 2.4 lakh crore mark. This jump of 35.2% was higher than the 27% rise witnessed in the first six months of the current financial year according to a study done by NPAsource.com, a portal which focuses on resolution of stressed assets.

Ten out of the 40 listed banks accounted for nearly 70% of the total gross NPAs of Rs 2.43 lakh crore according to the NPAsource.com study. The State Bank of India at 28% and Rs 67,799 crore has the largest share in the total gross NPAs of the 40 listed banks as per the table given above. Next is Punjab National Bank with 7% share at Rs 16,596 crore of gross NPAs, followed by Bank of Baroda and Central Bank of India with 5% share each.

As of December 31, 2013, Bank of Maharashtra posted the largest increase in gross NPAs of 209% at Rs 3516 crore from Rs 1,138 crore as of March 31, 2013. The United Bank of India reported a 188% jump in gross NPAs at Rs 8546 crore at end of Q3. Eleven banks posted a 50% plus growth in their gross NPAs for the nine months ending December 31, 2013.

D K Jain, Chairman & MD of Atishya Group, the owner of NPAsource.com said, “The fourth quarter of 2013-14 will continue to be bad for banks on the NPAs front, but most banks will resort to higher levels of provisioning so as to bring down their net NPA levels. The first quarter of next financial year too will continue to be bad for banks with regard to NPAs. The high concentration of banks’ debt to the top 50-100 corporates is also a major concern area. A clearer picture about the future of the Indian economy will emerge post the central elections due in May.”

The growth in net NPAs at 49% for the nine months ended December 31, 2013 as against a 38% rise in the first six months of 2013-14 is also alarming. Net NPAs have gone up to Rs 1.38 lakh crore as of Q3 end from Rs 93,116 crore at end of March 2013.

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