‘Lead by PSBs, NPAs soar 34.5% in Q3; pain to linger on’
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.
- Business Corner 15 Aug 2018 | Agencies
- No decision to shift Aero India from Bengaluru: Min 15 Aug 2018 | PTI
- 5,600 job seekers at HCL drive 15 Aug 2018 | PTI
- Wholesale inflation slows at 5.09% in July 15 Aug 2018 | PTI
- GDP likely to grow 7.4% in FY'19: FICCI 15 Aug 2018 | PTI
- Sensex, Nifty regain on strong macro,Turkish lira rebound 15 Aug 2018 | PTI
- Rupee hits all-time low 15 Aug 2018 | PTI
- Rain fury affects Kerala's tourism, plantation sectors 14 Aug 2018 | PTI
- DHFL Q1 Net Profit up by 35% at Rs 435 Crore 14 Aug 2018 | PNS
- Sebi comes out with list of 1,677 defaulters 14 Aug 2018 | PTI
Sunday EditionView All
12 Aug 2018 | Kestur Vasuki | Bengaluru
Karnataka Chief Minister HD Kumaraswamy who is facing wrath from the farmers in the State, in an appealing gesture planted paddy saplings in solidarity on Saturday. He chose Aralukuppe village in Mandya district the heart land of vokkaliga politics sowed paddy saplings in a muddied agriculture field amidst a large gathering...
STATE EDITIONSView All
15 Aug 2018 | Staff Reporter | Raipur
State of Chhattisgarh is moving faster from malnutrition to normal. But on the path, to achieve the target cooperation of all is required, said women and child development minister Ramsheela Sahu...