Five public sector banks account for nearly half of non-performing assets
NPA problem of banks have worsen further during Q1FY18. Banks have seen sharp rise of 34% year-on-year and nearly 17% quarter-on-quarter rise in NPAs.
Key Highlights:
- NPAs of 38 banks at Rs 829,335 crore in Q1FY18
- SBI accounts for 23% of total NPAs
- Top five PSBs holds over 47% of total NPAs
Bad loans has resulted in higher provisions, deterioration in asset quality, higher slippages and thus lower earnings for banks -- not to forget their future lending is at stake.
A total of 38 banks have presented their financial performance for the quarter ended June 30, 2017 (Q1FY18) and the NPA numbers look scary.
On year-on-year (YoY) basis, these banks have seen a sharp rise of 34.17% to Rs 8,29,335 crore compared to Rs 6,18,109 crore in the corresponding period of the previous year.
Has NPA recognition by banks post AQR complete or is it just a myth?
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