Oct 03, 2012, 10.40 AM | Source: PTI
The non-performing assets of the banking sector rose sharply to 1.28 per cent in 2011-12 from 0.97 per cent a year ago due to high interest rate and slowdown in the economy.
The NPAs (non-perfomring assets) or bad loans of the public sector banks rose to 1.53 per cent in 2011-12, up from 1.09 per cent 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 alongwith its associates rose to 1.76 per cent from 1.49 per cent in 2010-11.
SBI's net NPA rose to 2.22 per cent in the first quarter of the current fiscal from 1.61 per cent a year earlier.
However, private sector banks managed to reduce their NPAs in 2011-12 to 0.46 per cent from 0.56 per cent in 2010-11, it said.
Non-performing assets of old private sector banks increased marginally to 0.58 per cent during the year from 0.53 per cent in the previous fiscal.
Also, foreign sector banks had their NPAs below one per cent at 0.61 per cent, down from 0.67 per cent 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 a higher NPAs in their books because of continued slowdown in the economic activities on the back of rising interest rate regime.
Non-performing assets (NPAs) of banks have shot up
Another banking sector fraud with “Children Bank
Gem and Jewellery Export Promotion Council (GJEPC)
After its associate banks are merged into the Stat
State Bank of India (SBI) will merge its five asso