Will you agree with me ? NPA growth in Private banks are much higher than Government PSB’s. If compare the growth of Bad loans or NPA (Non performing Assets) among Private and Public Sector Bank, it is Private sector banks who are adding bad loans at a much faster pace than their public sector counterparts over the past three quarters. Total ₹6.5-lakh crore bad loans in the banking system, private sector banks now hold about 14 per cent.
Their share in total non-performing assets (NPAs) was around 10.6 per cent a year ago. For previous three financial quarter the growth in NPAs for private sector banks have been growing (on a year-on-year basis) at a scorching 60-100 per cent where as moderate growth in Public Sector banks. Private banks had shown the 65 per cent y-o-y jump in GNPAs during the latest March quarter, where as Public sector banks have shown much lower 21 per cent rise.
Two big private sector banks i.e. ICICI Bank and Axis Bank together constituting nearly 70 per cent of the total NPAs of all private banks. These banks are more exposed to stressed sectors such as power and iron and steel.
Gross NPA at ICICI Bank is around ₹42,500 crore as of March 2017. Last march quarter i.e. in June 2016 quarter, ICICI bank alone added nearly ₹6,000 crore in the system. Where as peer bank Axis has Gross NPA of ₹21,200 crore as of March 2017.
YES Bank, reported Gross Non performing assets (GNPAs) of ₹748 crore in FY16.
Public Sector Bank Gross NPA growth :
The mother of all NPA is with State Bank of India (SBI) where Gross NPA is about ₹10,000 crore. Three to four quarters prior to the AQR, SBI’s quarterly slippages stood at ₹5,000-7,000 crore. SBI has revised its watch-list for expected slippage during FY18 at ₹32,400 crore (about ₹10,000 crore from associate banks).
Punjab National Bank (PNB) and Indian Overseas bank (IOB) are the leader from public sector bank if percentage of Gross NPA calculated. Punjab national bank gross NPA is equivalent to half that of the total loan outstanding of any mid size banks in India like Corporation bank or IndusInd Bank.
Bank of Baroda’s is having Gross NPA around 13% elevated at around ₹4,100 crore in the latest March quarter as well.