Reflecting deterioration in economic activities, net non-performing assets (NPA) of all banks have increased to 1.68 per cent of the total loan at the end of 2012-13, according to the Reserve Bank of India.
The net NPA of all banks was 1.28 per cent at the end of 2011-12, RBI said in report titled 'A Profile of Banks: 2012-13'.
Net NPA of the 26 public sector banks, including State Bank of India (SBI), rose to 2.02 during the year as compared to 1.53 in the previous fiscal. SBI and its five associates recorded a net NPA of 2.04 per cent against 1.76 per cent in the comparable period.
Net NPA of new private sector bank rose marginally to 0.45 per cent as compared to 0.42 per cent.
Tight liquidity situation resulted in increase in cost of funds of all commercial banks to 6.12 per cent as against 5.90 per cent in 2011-12.
As far as stat-owned banks were concerned, the cost of funds rose to 6.27 per cent from 6.06 per cent in 2011-12.
Rise in cost of funds had its bearing on net interest margin (NIM) or interest spread of banks, which came down to 2.79 per cent from 2.90 per cent a year ago.
Public sector banks earned a NIM of 2.57 per cent as compared to 2.76 per cent in the previous fiscal.
