Npa Blues

But among bankers, another point is being discussed - that of the NPAs or non-performing assets. The committee has estimated the proportion of NPAs for 1996-97 at 13.3 per cent. Few bankers find this figure palatable.

What has added to their discomfiture is the revelation that the NPAs of the new private sector banks have reached mamoth proportions.

According to one estimate, the figure of NPAs of these banks would be around Rs 100 crore. In their efforts to outdo each other, these banks seem to have thrown prudence to the winds and in the process ended up with huge burden of bad loans. So, what happens to the hopes of NPAs of banks reducing substantially this financial year?