KARACHI: The non-performing loans (NPLs) of all banks and development financial institutions (DFIs) increased to Rs562.4 billion for the period ended in Dec 2010 against Rs508.83bn by the quarter ended on September 30, 2010, the State Bank of Pakistan (SBP) said on Monday.
The NPLs against net loans also increased to Rs187 billion from Rs148.39 billion during the period under review. The gross NPLs for all commercial banks rose to Rs515 billion by the end of the second quarter of the current fiscal year against Rs461.98 billion during the first quarter. The cash recovery against NPLs, however, posted impressive growth as it stood at Rs15.53 billion for the quarter October-December 2010 against Rs10.63 billion during the first quarter.
The non-performing loans grew at a faster rate during the ongoing fiscal year as NPLs of the banking sector stood at Rs460 billion by June 2010. Analysts said that the rise in the non-performing loans was due to floods and rains during the start of the current fiscal year, which reduced the capability of loans repayment and increased the infected loans.