PNB Bad Loans Highest Among PSU Banks;Up 3-Fold in 9 Months
April 21 2010
Source : The Economic Times
NEW DELHI: Punjab National Bank (PNB) has earned the dubious distinction of recording the fastest growth in bad loans among state-owned banks.
PNB, whose bad loans grew three-fold to Rs 842 crore during the period, was followed by Union Bank of India, Corporation Bank , Bank of India, Vijaya Bank and Canara Bank , said a report of the Standing Committee of Finance tabled in Parliament.
However, some of the leading banks, including Bank of Baroda , Indian Bank , Central Bank of India , UCO Bank and, State Bank of Hyderabad managed to reduce their net NPAs during the nine-month period.
The government attributed the increase in NPAs of PNB and some other state-owned banks to factors like the impact of the global economic recession, bad monsoon and bird flu.
"Each bank board has to look into these assets (NPAs) which are going bad and see what better monitoring can be done to see that these accounts are nursed and brought back to proper health," Finance Ministry told the Committee.
According to the data, the net NPAs of Union Bank of India during the period increased to Rs 573 crore from Rs 193 crore at the end of March 2009. Corporation Bank's net NPAs increased to Rs 266 crore from Rs 144 crore during the nine-month period.
In case of Canara Bank, the net NPAs increased to Rs 1,721 crore from Rs 1,350 crore at the end of March 2009, while Bank of India's bad loans stood at Rs 1,457 crore against Rs 834 crore during the same period.
The net NPAs of country's largest lender State Bank of India (SBI) increased to Rs 10,201 crore from Rs 8,850 crore during the nine-month period.
The net NPAs of 27 public sector lenders, including six associate banks of SBI, increased to Rs 25,610 crore at the end of December 2009 compared to Rs 20,801 crore in March 2009.