The Banking industry in India has always been one of the most favoured in our country thanks to solid and stellar numbers declared year after year. But, if you take the last year 2016 and dig a little deeper into the numbers, there is one glaring problem that has come out – Non Performing Assets or NPA’s. In layman terms an NPA refers to a Bad Loan that has defaulted. Would these NPA’s push the Indian Banking Scene into a Major Crisis? That’s what you will find out in this article…
Year 2016 – The Increasing NPAs
The Banks in India are currently reeling under a lot of pressure. The amount of NPAs on their books is steadily on the rise with 2016 seeing never before seen rise in NPAs. Look at the chart below for the quarterly growth of NPAs from Dec 2013 until June 2016 (Because official statistics for Q3 and Q4 of 2016 are not available on the web yet)
In just the first half of 2016 the NPAs have gone up by around 2 lakh crores. Don’t be surprised, the numbers below are not exaggerations or made up. They are the actual stats released by RBI and as of June 2016 the total outstanding bad loans on the books of Banks in India is more than 6 lakh crores.
If we dig a little deeper and try to understand on a per bank basis, no surprises there either. State Bank of India, the largest bank in our country has about 93,137 crores as NPAs. Though this is a huge number, it translates to around 8% of the total loans granted by SBI. That is a whole lot of bad loans isn’t it?
Even though SBI is the highest in sheer NPA value, the worst in terms of % is Indian Overseas Bank. Even though their total outstanding NPAs is 30,239 crores, it translates to 20.27% of all its loans. This means 1 in 5 rupees given out by IOB as a Loan is an NPA. A very close second is UCO Bank with 21,495 crores in NPA which translates to 18.66% of its loans. In third place is Bank of India with 43,935 crores in NPA which translates to 16% of its loans.
Look at the table below and you will be able to see the bank wise stats in terms of their total loans in rupees, the NPA as well as the % of NPAs.
|Bank Name||Total Loans (Crores)||NPA (Crores)||NPA Ratio %|
|State Bank of India||1193325||93137||7.8%|
|Punjab National Bank||356958||55003||15.4%|
|Bank of India||274391||43935||16%|
|Bank of Baroda||269115||35604||13.23%|
|Indian Overseas Bank||149217||30239||20.2%|
|Union Bank of India||242935||25560||10.5%|
|Central Bank of India||185719||25107||13.5%|
|IDBI Bank Limited||202304||21724||10.7%|
|Bank of Maharashtra||103148||13040||12.6%|
|State Bank of Patiala||85239||11365||13.33%|
|United Bank of India||70781||10104||14.27%|
|State Bank of Hyderabad||112420||9436||8.39%|
|State Bank of Travancore||68276||6401||9.37%|
|Jammu & Kashmir Bank Ltd.||50640||4715||9.31%|
|State Bank of Bikaner & Jaipur||74033||4593||6.2%|
|Punjab & Sind Bank||63134||4566||7.2%|
|State Bank of Mysore||55228||4323||7.8%|
|IDFC Bank Limited||49714||3030||6.09%|
|Federal Bank Ltd.||59408||1747||2.94%|
|South Indian Bank Ltd.||41705||1652||3.96%|
|Karnataka Bank Ltd.||35412||1389||3.9%|
|IndusInd Bank Ltd.||93667||861||9.19%|
|City Union Bank Ltd.||21216||555||2.6%|
|Tamilnad Mercantile Bank Ltd.||22329||489||2.19%|
|Catholic Syrian Bank Ltd.||7859||455||5.8%|
|DCB Bank Ltd||13464||231||1.7%|
|Bharatiya Mahila Bank Ltd.||627||3||0.4%|
Disclaimer: All statistics were taken from the internet and the author does not guarantee the accuracy of the same or assume any liability owing to them being incorrect. This is not a politically motivated post and hence please avoid comments supporting or blaming any political party in this blog.