Mounting NPAs offer little respite to public sector banks in third qtr
feBureau: Feb 21 2013, 10:16 IST
two quarters at R2,199 crore and R3,700 crore respectively. A BoB official said restructuring in the quarter for the bank was mostly in the SME space, which tends to be cyclic in nature. Slippage rate on the restructured book is around 12-13%, the official added.
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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