New Delhi, May 21: Data of last five years revealed that the Non-Performing Assets of private banks on a surge, with a 450 percent hike in gross NPAs of these lenders from Rs 19,800 crore at the end of financial year 2013-2014 to Rs 109,076 crore at the end of March 2018.
According to the Indian Express report, Among the banks that have accumulated a huge rise in bad loans are ICICI Bank, Axis Bank, HDFC Bank, Kotak Mahindra Bank, Federal Bank and Yes Bank.
ICICI Bank is on top of the NPA list with Rs 54,063 crore in bad loans. It has recorded a 514 percent increase in NPAs in five years – from Rs 10,506 crore in FY 2013-14 to Rs 54,063 crore in March 2018, the IE report stated.
Axis Bank saw a 988 percent jump in its bad debts in last five financial years. The Bank’s bad loans have climbed up from Rs 3,146 crore in FY 2013-14 to Rs 34,249 crore in FY 2017-18, the report said.
The Reserve Bank of India (RBI) had recently imposed a fine of Rs 3 crore on Axis Bank for violations of NPA classification.
While HDFC Bank’s NPAs rose from Rs 2,989 crore to Rs 8,607 crore in the last five financial years.
Yes Bank’s NPAs jumped from Rs 175 crore in FY 2013-14 to Rs 2627 crore in 2018.
Last year, the RBI in a risk assessment discovered that Yes Bank had under-reported its NPAs by Rs 6350 crore.
However, Yes Bank is not alone in under-reporting NPAs. From ICICI to HDFC to Axis Bank, all have invited flak from the RBI for asset divergence. In March 2017, the RBI in its assessment had found that HDFC had under-reported its NPAs by Rs 2052 crore.