UTI Bank, which recorded a 135 per cent growth in its advances during 1997-98 from Rs 639 crore to Rs 1,499 crore, ended the year with the highest NPA position at 5.63 per cent of total advances. This figure compares with some of the old private sector banks that have been in existence for over 40 years. Banking analysts feel that the NPAs of UTI Bank could influence the pricing of its maiden public issue during the current year.

IndusInd Bank, which saw its advances grow to Rs 2,450 crore from Rs 1,927 crore during 1997-98 - indicating a growth of 27 per cent, has come in second with NPAs standing at 3.96 per cent. The bank's NPAs during the previous year stood at just 2.08 per cent. Global Trust Bank, on the other hand, whichhad the highest level of NPAs at 4.47 per cent (Rs 66.85 crore) during 1996-97, has managed to bring this figure down to 2.98 per cent. The bank's conservative approach towards lending during 1997-98 has seen its advances base grow by only 16 per cent.

IDBI Bank, which managed a credit growth of more than two-fold during 1997-98 from Rs 495 crore to Rs 1,042 crore, has been able to bring down its NPAs position to 0.30 per cent from 0.50 per cent during the previous year. The growth in its advances base has helped the bank show the lowest NPAs among the nine banks. Its NPA position is largely due to just one sticky account.

During 1997-98, Centurion Bank, which till recently maintained its reputation of being a zero-NPA bank, had its first tryst with sticky assets. An LC scam during the second half of the year saw the bank take a hit of about Rs 12.35 crore. The bank has written off the entire amount.

Though the new private banks have built up substantial NPAs in absolute terms considering their size,their NPA position is far less worrisome than their public sector counterparts.

"NPAs are not something any bank can wish away. No matter how conservative an approach banks take towards their lending operations, NPAs are inevitable considering the current economic scenario," said the chief of a private bank.

A number of banks have already decided to stop lending to the steel, paper and petrochemicals industry considering the poor performance of these sectors. In 1997, the RBI broadbased the disclosure norms and directed commercial banks to declare the amount of net non-performing assets in their balance-sheets. It has also asked banks to specify the quantum of provisioning made on account of NPAs. However, most of the new banks could get away without revealing their NPA figures as they had finalised their 1996-97 results before the issuance of the RBI directive.