Banks' asset quality deteriorates in UP

NPA levels report increase

The non-performing assets (NPAs) of banks operating in Uttar Pradesh have increased indicating bad debts and sloppy recovery mechanism.

The aggregate NPAs of commercial, cooperative and regional rural banks (RRBs) in UP increased to about Rs 19,603 crore at the end of December 2013 compared to Rs 17,023 crore as on April 1, 2013.

The outstanding (O/s) advances of all these banks in UP was over Rs 3,11,938 crore. Thus in%age terms, NPAs stood at 6.28%, when such distressed assets were expressed against O/s advances. In December 2012, the NPAs had stood at 6.05%, which shows an increase of 0.23%.

Interestingly, RRBs led the banking sector peers in showing deteriorating asset quality as their NPAs increased to 13.12% compared to 9.88% in December 2012, an increase of 3.24%.

The performance of commercial banks was average as their NPAs levels remained flat at 5.32% during the period. The bulk of over 13,000 bank branches in UP belong to commercial banks, both public and private sector.

The cooperatives banks had performed much better than commercial banks and RRBs, since their net NPAs decreased from 16.54% to 16.34%.

Institution	NPA level as on 1-4-2013 (Rs crore)	Additions (1-4-2013 to 31-12-2013) (Rs crore)	Recovery (1-4-2013 to 31-12-2013) (Rs crore)	O/s Advances as on 31-12-2013 (Rs crore)	NPA Level
					As on 31-12-2013 (Rs crore)	% against O/s level
Commercial Banks	13,456	7,797	6,515	27,7263	14,738	5.32 (5.32)
RRBs	1,967	2968	1,668	24,899	3,267	13.12 (9.88)
Cooperatives	1,600	0	1.86	9,777	1,598	16.34 (16.54)
Total	17,023	10,765	8,185	31,1938	19,603	6.28 (6.05)
Source: State Level Bankers’ Committee (SLBC)