PSBs continue to feel the heat of growing NPAs.
InQ3FY18, SBI's bad loans escalated since merging its five associate banks in April last year. After a sharp fall to Rs 9,026 crore in the September quarter, its NPAs have climbed back to Rs 25,836 crore in the December quarter.
The NPAs for the merged entity for the June 2017 quarter stood at Rs 26,249 crore, higher than Rs 25,000 crore in the March 2017 quarter.
In Q3, it is the RBI's annual risk-based supervision exercise that added to the NPAs. SBI had reported bad loans of Rs 23,239 crore for FY17.
The bank reported an 83% jump in bad-loan provisioning. Coupled with a weak growth credit, it drove SBI into a loss of Rs 2,416 crore in the December quarter - significant for a bank of SBI's size.
On the other hand, PNB reported a fall in GNPAs from 13.7% in the December 2016 quarter to 12.1% in the latest December quarter. But bad-loan provisioning remained at about Rs 2,900 crore; in fact, it has been steadily increasing in the past two quarters.
BOB, too, witnessed doubling of its NPAs in Q3. Just like SBI, after reporting a sharp fall in NPAs in the September quarter, it saw them doubling in Q3.
While asset quality woes continue to plague all the three, there has been a notable difference in the core performance of these banks.
Bank of Baroda's performance has been relatively better than its peers in the latest December quarter. Its net interest income jumped 40% in Q3 on a 16% growth in loans and improvement in margins.
PNB's net interest income grew by 6.9% in the December quarter on the back of a healthy 20% growth in its net interest income in the December quarter.
In contrast, SBI's net interest income grew by a muted 5.2% y-on-y on the back of a tepid 2% growth in advances as large, mid-corporate and SME loans declined by 4.2%.
PSBs continue to remain trapped in NPAs
By IndianMandarins - 2018-02-10 11:06:51
PSBs continue to feel the heat of growing NPAs.
InQ3FY18, SBI's bad loans escalated since merging its five associate banks in April last year. After a sharp fall to Rs 9,026 crore in the September quarter, its NPAs have climbed back to Rs 25,836 crore in the December quarter.
The NPAs for the merged entity for the June 2017 quarter stood at Rs 26,249 crore, higher than Rs 25,000 crore in the March 2017 quarter.
In Q3, it is the RBI's annual risk-based supervision exercise that added to the NPAs. SBI had reported bad loans of Rs 23,239 crore for FY17.
The bank reported an 83% jump in bad-loan provisioning. Coupled with a weak growth credit, it drove SBI into a loss of Rs 2,416 crore in the December quarter - significant for a bank of SBI's size.
On the other hand, PNB reported a fall in GNPAs from 13.7% in the December 2016 quarter to 12.1% in the latest December quarter. But bad-loan provisioning remained at about Rs 2,900 crore; in fact, it has been steadily increasing in the past two quarters.
BOB, too, witnessed doubling of its NPAs in Q3. Just like SBI, after reporting a sharp fall in NPAs in the September quarter, it saw them doubling in Q3.
While asset quality woes continue to plague all the three, there has been a notable difference in the core performance of these banks.
Bank of Baroda's performance has been relatively better than its peers in the latest December quarter. Its net interest income jumped 40% in Q3 on a 16% growth in loans and improvement in margins.
PNB's net interest income grew by 6.9% in the December quarter on the back of a healthy 20% growth in its net interest income in the December quarter.
In contrast, SBI's net interest income grew by a muted 5.2% y-on-y on the back of a tepid 2% growth in advances as large, mid-corporate and SME loans declined by 4.2%.
