Private banks' net NPAs surge 48.5% in first half

Written by FE Research Bureau | Pradip Kumar Dey | Updated: Nov 29 2007, 09:09am hrs
Net non-performing assets (NNPAs) of 16 private banks rose significantly by 48.5% during the first six-month period of current fiscal (April-September 2007).

The NNPAs were higher as against the 19.7% rise of 26 public sector banks (PSBs) during the same period. The average NNPAs to net advances ratio of PSBs declined from 1.04% in April-Sept 2006 to 0.91% in April-Sept. 2007. Similarly, in the case of private banks,the ratio also showed a fall from 1.38% to 0.98% during the same period.

In absolute terms, the NNPAs of 16 private banks increased from Rs 3,139 crore in April-September 2006 to Rs 4,662 crore in April-September 2007. The highest increase in NNPAs was registered in the case of ICICI Bank at 96.9% followed by Centurion Bank at 96.4%.

In the case of 26 PSBs, the NNPAs increased from Rs 13,632 crore to Rs 16,315 crore. The highest increase in NNPAs was seen in the case of Punjab National Bank (PNB) at 1183.8% and Andhra Bank at 150.7%. NNPAs to net advances ratio of ICICI Bank rose from 1% in April-September 2006 to 1.4% in April-September 2007, for Centurion Bank, from 1.34% to 1.59%, IndusInd Bank, from 1.71% to 2.43%, Jammu and Kashmir Bank from 0.88% to 0.91% and Lakshmi Vilas Bank from 1.55% to 2.20%.

The top five private banks, according to the ratio of NNPAs to advances during April-September 2007, are IndusInd Bank (2.43%), Lakshmi Vilas Bank (2.2%), Centurion Bank (1.59%), ICICI Bank(1.4%) and Dhanalakshmi Bank (1.23%).

Among the PSBs,PNB increased its NNPAs to net advances ratio from 0.18% in April-September 2006 to 1.86% in April-September 2007, Oriental Bank from 0.46% to 0.64%, State Bank of Bikaner and Jaipur from 1.12% to 1.22%, State Bank of Patiala from 0.85% to 0.98%, Syndicate Bank from 0.89% to 0.95% and UCO Bank from 2.02% to 2.26%.

The top five PSBs, according to the ratio of NNPAs to advances in April-September 2007, are UCO Bank (2.26%), PNB (1.86%), SBI (1.63%), Dena Bank (1.56%) and Central Bank of India (1.41%). The highest decrease in NNPAs during April-September 2007 was seen in Karur Vysya Bank (-54.2%) among private banks and Union Bank of India (-41.3%) among PSBs.