NPAs or bad loans of public sector banks rose to 1.53% from 1.09%, however private banks reduced their NPAs to 0.46% from 0.56% during 2011-12
Mumbai: Non-performing assets (NPAs) of the banking sector rose sharply to 1.28% in 2011-12 from 0.97% a year ago due to high interest rate and slowdown in the economy, reports PTI.
The NPAs or bad loans of the public sector banks rose to 1.53% in 2011-12, up from 1.09% in the previous year, said the latest RBI report.
As per the Profile of Banks: 2011-12 released by the RBI, the NPA for India's largest public sector lender SBI along with its associates rose to 1.76% from 1.49% in 2010-11.
SBI's net NPA rose to 2.22% in the first quarter of the current fiscal from 1.61% a year earlier.
However, private sector banks managed to reduce their NPAs in 2011-12 to 0.46% from 0.56% in 2010-11, it said.
Non-performing assets of old private sector banks increased marginally to 0.58% during the year from 0.53% in the previous fiscal.
Also, foreign sector banks had their NPAs below one% at 0.61%, down from 0.67% in 2010-11, RBI said.
RBI, however, has asked the banks to improve their ability to manage stressed assets.
Banks, specifically public sector, have been reporting higher NPAs in their books because of continued slowdown in the economic activities on the back of rising interest rate regime.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
