Business

‘Lead by PSBs, NPAs soar 34.5% in Q3; pain to linger on’

| | Mumbai

The issue of impaired assets may be far from over for the banking system as gross non-performing assets have grown by 34.5 per cent in the December quarter, says a report.

Even as bankers guide towards a better position with regard to bad loans, rating agency Care has said the issue of impaired assets is not yet over, including on recognition and accretion of loans into the dud assets category.

In the report based on the performances of 30 lenders, including 17 private sector banks and 13 state-run ones, the agency said the quantum of gross NPAs moved up to 9.45 per cent as of December from 8.34 per cent a year ago. While private sector banks' bad loans ratio was maintained broadly at 4.1 per cent, their state-run counterparts registered a spike in the proportion of dud assets at 12.4 per cent. “It does appear that the worst may not yet be over for public sector banks with regards to NPAs and March 2018 would be the next touch point that will provide further guidance,” Care said. Public sector banks had a weaker performance on various indicators, including the key parameter of NPAs and also profitability, according to the agency.While the private sector lenders' profitability grew during the quarter, the state-run ones faced a loss of Rs 11,000 crore, primarily dented by their provisions of Rs 51,000 crore.

Interest income grew 8.9 per cent as against a 2.3 per cent increase in interest expenditure, while net interest income for these 30 banks shot up 22.4 per cent, it said, adding other income declined due to hardening of the bond yields.

 
 
 
 
 

TOP STORIES

Sunday Edition

View All

Zuma’s downfall gives ANC a final chance

18 Feb 2018 | Gwynne Dyer

Now that Jacob Zuma has finally exited, the African National Congress, which has fallen a long way from its glory days, has one last chance to rebuild its reputation before next year’s election. Whether the ANC is the best bet for South Africans is a different question altogether As a passer-by in the upscale Johannesburg suburb of Saxonwold observed, the South African Police would never have raided the enormous, high-walled compound...

Read More

STATE EDITIONS

View All

Inbrief

24 Feb 2018 | PNS

Special cleanliness drive today Bhopal: The Sant Nirankari Charitable Foundation is organising a special cleanliness drive on Saturday at Government Sultania Hospital on Saturday. The Nirankari volunteers will assemble at 7...

Read More

Page generated in 0.2097 seconds.