Banks' NPAs may worsen

More than a dozen banks reported an over 100% increase in their net Non Performing Assets (NPAs) in 2011-12 and the situation may get worse in the current financial year 2012-13, according to NPAsource.com.

Large banks like Central Bank of India at over 400%, Indian Bank with 201%, Oriental Bank of Commerce at 162%, Corporation Bank with 119% and Punjab National Bank with 118%  were amongst those banks, which reported a 100% jump in their net NPAs in 2011-12.

"The NPA scenario has got worse in the first half of the current financial year with gross NPAs' growth rate at 45.7% being far higher than the growth in gross advances by banks in India," said Devendra Jain, CMD, Atishya Group, which runs NPAsource.com.

As of September, 2012, net NPAs for 39 listed banks were higher by about `31,100 crore or 58% compared to corresponding period of last year.

Of this, about 75% or `23,300 crore has increased during the first half of the current financial year. Similarly, gross NPAs as of September, 2012 were higher by `53,000 crore or 46.7% compared to the corresponding period a year ago.

According to Jain, Central Bank of India's net NPAs growth rate has jumped by 224.5% that of PNB's, which shot up by 277%. Indian Bank witnessed an increase of 111%.  SBI too registered a 40% increase in its net NPAs during the first half of 2012-12 as against an increase of 28% in the previous financial year ended March, 2012.

As per NPAsource, net NPAs of 39 listed banks as of March, 2012 stood at `61,380 crore, which increased to `84,680 crore as of September 2012, a growth of 38%.