NPAs increasing in PSU banks: CARE Ratings Report

The results of 13 PSU banks for the fourth quarter of 2016-17 are out. Here are the highlights of a report by CARE Ratings analysing the NPA trends.

NPAs jumped 57% from Rs 1.67 lakh crore as of December 2015 to Rs 2.33 lakh crore in March 2016

These banks have since continued to witness an increase in NPAs with an increment of about Rs 50,000 crore in the next four quarters till March 2017.







Of the 13 banks...
1. 7 were above the average GNPA ratio of 5.12% in March 2015. They continue to be above the 11.97% average in March 2017.

2. 4 had ratios of less than 10% by March 2017.

3. 8 had NPA ratios above 10% in the first quarter of 2016-17. Another bank joined the list in March 2017.
4. 8 did bring their NPA ratios down by March 2017, which could be an indication that these levels could come down further in the future.

5. 5 have peaked in terms of NPAs in March 2017.
Source: CARE Ratings