The net bad assets of 40 listed banks rose by 38 per cent to Rs 1,28,533 crore during the first half of the fiscal from Rs 93,108 crore at the end of the last fiscal.
Alarmingly, the non-performing assets (NPA) of these banks are likely to cross Rs 1.5 lakh crore by the end of the fiscal, according to NPAsource.com.
Gross NPAs as of September, 2013 stood at Rs 2,29,007 crore, 27.3 per cent higher compared to Rs 1,79,891 crore in March 2013 for these 40 listed banks. Of the total 40 listed banks, 14 have reported more than 50 per cent jump in their net NPAs during the first six months of the current financial year.
Interestingly, the percentage of top 10 banks in net NPAs reduced to 67.8 per cent in September, 2013 from 70 per cent in March, 2013.
Net NPAs of seven banks was higher than 3.5 per cent at the end of September quarter as against none at the March quarter.
“Net NPAs in the banking system is likely to touch Rs 1.5 lakh crore by March, 2014 as two more quarters are remaining in the current fiscal and the situation is worsening every quarter,” said Devendra Jain, CMD, NPAsource.com.
“With interest rates expected to remain high at least for the remaining fiscal and the economy and corporates in poor shape, banks have a tough road ahead,” he added.
Jain further said more pressure on non-performing assets will come in next two quarters as many restructured loans at last year will get converted to NPAs.