Public sector banks are more stressed than their private sector counterparts with the former figuring among the top 20 banks with the highest gross non-performing asset (GNPA) ratios, according to CARE Ratings' analysis of the first quarter results of 38 banks.
Among the top 20 banks, according to GNPAs in absolute terms, 18 are PSBs and only two are private sector banks - ICICI Bank and Axis Bank. These two private sector banks have a combined share of 7.9 per cent in total NPAs.
Eight PSBs banks - IDBI Bank, Indian Overseas Bank, UCO Bank, Bank of Maharashtra, Central Bank of India, Dena Bank, United Bank of India, and Corporation Bank - had a GNPA ratio of over 15 per cent as of June 2017.
Indian Bank has the lowest GNPA ratio of 7.21 per cent, the credit rating agency said.IDBI Bank (with gross NPA ratio of 24.11 per cent of gross advances) and Indian Overseas Bank (23.6 per cent) topped the list of banks with high GNPAs.
On a quarter-on-quarter basis, the increase in NPAs has been the highest in Q1 FY18 witnessing an increase of about 16.6 per cent to reach Rs. 8,29,338 crore as of June 2017. The agency said the performance of banks with respect to NPAs has not been too positive of late. "While it was largely expected that the NPA ratios would have settled by March 2017, as there were indications of stabilisation relative to December 2017, the picture emerging for Q1 FY18 is that the NPAs have deteriorated further for the system as a whole," it added.
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PSBs more stressed than Pvt banks
By IndianMandarins - 2017-08-18 11:26:04
Public sector banks are more stressed than their private sector counterparts with the former figuring among the top 20 banks with the highest gross non-performing asset (GNPA) ratios, according to CARE Ratings' analysis of the first quarter results of 38 banks.
Among the top 20 banks, according to GNPAs in absolute terms, 18 are PSBs and only two are private sector banks - ICICI Bank and Axis Bank. These two private sector banks have a combined share of 7.9 per cent in total NPAs.
Eight PSBs banks - IDBI Bank, Indian Overseas Bank, UCO Bank, Bank of Maharashtra, Central Bank of India, Dena Bank, United Bank of India, and Corporation Bank - had a GNPA ratio of over 15 per cent as of June 2017.
Indian Bank has the lowest GNPA ratio of 7.21 per cent, the credit rating agency said.IDBI Bank (with gross NPA ratio of 24.11 per cent of gross advances) and Indian Overseas Bank (23.6 per cent) topped the list of banks with high GNPAs.
On a quarter-on-quarter basis, the increase in NPAs has been the highest in Q1 FY18 witnessing an increase of about 16.6 per cent to reach Rs. 8,29,338 crore as of June 2017. The agency said the performance of banks with respect to NPAs has not been too positive of late. "While it was largely expected that the NPA ratios would have settled by March 2017, as there were indications of stabilisation relative to December 2017, the picture emerging for Q1 FY18 is that the NPAs have deteriorated further for the system as a whole," it added.
