Some of India's biggest banks which reported the highest increase in net NPAs in 2011-12, faced further deterioration in asset quality in the first half of 2012-13 too, says a research report

During 2011-12, more than a dozen banks, including domestic and foreign have reported over 100% jump in their non-performing assets (NPAs) says a report by NPAsource.com.

Alarmingly, "The NPA scenario has got worst in the first half of current financial year (2012-13), with gross NPAs growth rate at 45.7% being far higher than the growth in gross advances by banks in India” says Devendra Jain, CMD of Atishya Group that owns the portal NPAsource.com.

Some of India's biggest banks which reported the highest increase in net NPAs in 2011-12, faced further deterioration in asset quality in the first half of 2012-13 too: Central Bank of India (CBI)'s net NPAs growth rate has again jumped by 224.5%, that of Punjab National Bank (PNB)'s has shot up by 277% and for Indian Bank it is a further jump of 111%. India's largest bank, the State Bank of India (SBI) too saw its net NPAs shoot up by 40% in net NPAs during the first half of 2012-13 as against an increase of 28% in the previous financial year ended 31 March 2012.

According to the research, large banks like CBI at over 400%, Indian Bank with 201%, Oriental Bank of Commerce (OBC) at 162%, Corporation Bank with 119% and PNB with 118% were amongst those banks which reported over 100% jump in their net NPAs during 2011-12. Foreign banks like Bank of Bahrain & Kuwait (399%), Chinatrust Commercial Bank (269%), DBS Bank (232%) and Standard Chartered Bank (193%) too figured amongst the banks with very high increase in their net NPA levels, it said.

As of 30 September 2012, net NPAs for 39 listed banks were higher by around Rs31,100 crore or 58% compared to corresponding period of last year, the analysis by NPAsource.com shows. Of this, about 75% or Rs23,300 crore has risen during first half of FY13. Similarly gross NPAs as of 30 September 2012 were higher by Rs53,000 crore or 46.7% compared to corresponding period of last year. Of this 66% or Rs35,200 crore has risen during first half of FY13, it said.

According to recent data released by the Reserve Bank of India (RBI) even as the gross NPAs of all banks shot up by 45.7% for the first half ended 30 September 2012, the gross advances growth rate was just 15.9%.

The analysis done by NPAsource.com shows that net NPAs of 39 listed banks as of March 2012 were Rs61,380 crore and this has risen to Rs84,680 crore as of September 2012, growth of 38%. Similarly, gross NPAs as of March 2012 were Rs1.31 lakh crore, which have risen to around Rs1.67 lakh crore as of September 2012, growth of 27%.