Signaling the deteriorating health of Indian economy and the banking sector, a recent study has revealed that net NPAs of 39 Indian banks stood at Rs 92,825 crore as at March 31, 2013, an increase of 51.2 per cent over Rs 61,381 crore as at March 31, 2012.
During the Jan-Mar quarter, net NPAs of those 39 banks increased marginally by 0.8 per cent quarter-on-quarter, mainly due to significant rise in provisioning in the books.
NPAsource.com, a portal which focuses on asset quality of banks, also said that gross NPAs increased by Rs 887 crore during FY'13 to Rs 179,431 crore as at March 31, 2013 from Rs 178,544 crore as at March 31, 2012.
DK Jain, CMD, Atishya Group, owner of portal NPAsource.com says, "The study shows banks are working hard on improving the asset quality. With the interest rates expected to come down, the next few quarters may see a slowdown in the growth rate of NPAs. But, pressure on NPAs, especially for public sector banks will continue as more loans become NPAs due to the overall slowdown in the Indian and global economy."