Net NPA of banks rises to 1.68% in 2012-13: RBI

Reflecting deterioration in economic activities, net non-performing assets (NPA) of all banks have increased to 1.68 percent of the total loan at the end of 2012-13, according to the Reserve Bank of India.

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The net NPA of all banks was 1.28 percent at the end of 2011-12, RBI said in report titled 'A Profile of Banks: 2012-13'.

Net NPA of the 26 public sector banks, including State Bank of India (SBI), rose to 2.02 during the year as compared to 1.53 in the previous fiscal. SBI and its five associates recorded a net NPA of 2.04 percent against 1.76 percent in the comparable period.

Net NPA of new private sector bank rose marginally to 0.45 per cent as compared to 0.42 per cent. Tight liquidity situation resulted in increase in cost of funds of all commercial banks to 6.12 percent as against 5.90 percent in 2011-12.

As far as stat-owned banks were concerned, the cost of funds rose to 6.27 percent from 6.06 percent in 2011-12.
 
Rise in cost of funds had its bearing on net interest margin (NIM) or interest spread of banks, which came down to 2.79 percent from 2.90 per cent a year ago. Public sector banks earned a NIM of 2.57 percent as compared to 2.76 percent in the previous fiscal.