Bad loans of banks rise 50% in first 9 months: Study
New Delhi: Bad loans or net non-performing assets (NPAs) of listed banks rose by 50 percent in the first nine months of the current financial year ended December, 2012, a study said.
Net NPAs of 40 listed banks rose Rs 61,558 crore as on March 31, 2012 to Rs 92,398 crore by December 31, 2012. In absolute terms, the hike is Rs 30,840 crore in the first three quarters of the current fiscal, according to the study by NPAsource.Com.
Major banks like SBI, BoB, PNB report over 50 percent increase in net NPAs, the report said.
Of the total forty listed banks, 16 have reported more than 50 percent jump in net NPAs during these nine months. These 16 banks together accounted for more than 80 percent or Rs 25,000 crore of incremental net NPAs, it added.
The study said, net NPAs in State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BOB) rose by 60.4 pr cent, 70.3 percent and 117.9 percent respectively.
These three banks accounted for close to 47 percent or Rs 14,500 crore of incremental net NPAs.
However, it is likely that from the next financial year the NPAs in the Indian banking sector may come under control if interest rates begin to go down, the study noted.