NPA in Indian banks

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Extracts from the Reserve Bank of India Financial Stability Report

On the weakening asset quality of Indian banks:

The gross non-performing advances (GNPAs) of SCBs as a percentage of the total gross advances increased to 4.5 per cent in September 2014 from 4.1 per cent in March 2014.

The net non-performing advances (NNPAs) as a percentage of total net advances also increased to 2.5 per cent in September 2014 from 2.2 per cent in March 2014.

Stressed advances increased to 10.7 per cent of the total advances from 10.0 per cent between March and September 2014. PSBs continued to record the highest level of stressed advances at 12.9 per cent of their total advances in September 2014 followed by private sector banks at 4.4 per cent (See Chart)

 

At a more granular level, share of stressed advances in total advances increased in the case of 46 SCBs (accounting for around 88 per cent of total loan portfolios of SCBs) between March and September 2014 Table below).

There are 20 banks which have higher share in the total stressed advances of all SCBs than their share in the total advances of SCBs.

These 20 banks together have 43 per cent of the total SCB loans and contribute around 60 per cent of the total stressed advances of the banking system.

Table: Changes in the stressed advances ratio : March - September 2014
	No. of Banks	Share in Total Advances of all SCBs (in per cent)
Increase in Stressed Advances Ratio	46	88.2
Decline in Stressed Advances Ratio	25	5.9
No Change in Stressed Advances Ratio	18	5.9
Total	89	100.0
Source: RBI supervisory returns.

Source: Financial Stability Report (Including Trend and Progress of Banking in India 2013-14) December 2014"

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