NPA rises by 450%

Non-Performing Assets: Banks witness NPA increase by 450% in last 5 years – Qbera News

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Indian banks witnessed an enormous 450% rise in gross NPAs over the last 5 years – a figure that symbolizes deep-rooted cracks at the core of India’s Private Banking System. This comes at a time when private banks have come under a much warranted and increased scrutiny following a series of wilful defaults and favourable treatment to certain businesses and clients.

Credible statistics obtained from a report by The Indian Express sources reveal that gross NPAs swirled to 109.076 crore as of March 2018 from 19,800 crore that was recorded at the end of the financial year 2013-2014.

Notable mentions that have witnessed this dramatic collective increase in gross NPAs include HDFC Bank, ICICI Bank, Kotak Mahindra Bank, IndusInd Bank, RBL Bank, Federal Bank, DCB Bank and Axis Bank. According to figures, ICICI Bank saw the biggest increase in NPAs while Axis Bank stood second in the overall NPA increase in the last 5 years and HDFC recorded the third largest increase in NPAs over the last 5 years.

ICICI Bank’s NPAs increased to Rs. 54,063 crore from Rs. 10,056 crore while Axis Bank’s NPAs rose to Rs. 34,249 crore from Rs. 3,146 crore and HDFC Bank’s increased to Rs. 8,607 crore from Rs. 2,989 crore.

Citing these massive increase in NPA numbers, a report from the Indian Express indicates that the RBI’s NPA circular dated February 13th 2018 was the reason behind the increase, as the report divulged a change in rules adopted by the Reserve Bank of India towards restructuring of stressed assets and its stance of divergence of Non-Performing Assets.

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