Mounting NPAs offer little respite to public sector banks in third qtr
BoB\'s net NPAs, as a ratio of total assets, stood at 1.12%, rising by 30bps sequentially. PNB, which was struggling with higher amount of non-performing assets (NPAs) during the preceding quarter, improved recovery procedures in the third quarter on better performance in the asset quality segment.
PNB reported net NPAs of R7,586 crore in the quarter, down nearly 4% sequentially. As a ratio of total assets, net NPAs stood at 2.6%, which was about 13 basis points (bps) lower than the previous quarter. The public sector lender reported net profit of R1,306 crore in the quarter, up 13.5% from a year ago.
Most state-owned lenders saw some form of moderation in their NIMs, as domestic and international loan growth have been disappointing.
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