Page 226 - DCOM208_BANKING_THEORY_AND_PRACTICE

Unit 13: Non Performing Assets

Notes
Table 3: The Trend of Net Non-performing Assets in Commercial Banks as on 31st March 2008
(as Percentage of Total Assets)
Banks Net NPAs/Total Assets
Public Sector LGR CGR
–22.31 –25.28
Private Sector –17.63 –18.81
Foreign Banks 2.31 –12.23
SBI Group –17.68 –21.87
Source: rbi.org

Table 3 indicates that Net Non-Performing Assets decline is highest in the case of Public
Sector Banks as compared to Private Sector Banks followed by State Bank of India Group.
This further reveals that SBI group has performed even than public sector banks but better
than private sector banks and foreign banks in NPA management.
Table 4: The Advances by Commercial Banks (Rupees in crores)
(as on March 31st during 1999-2008)
Banks LGR CGR

Public Sector 21.20 18.69
Private Sector 22.46 11.90
Foreign 17.99 15.73
Total 19.51 16.68
SBI Group 19.69 17.34
Source: rbi.org
Table 4 shows the growth of advances by different Commercial Banks in India during
1999-2008. During the last years the, advances by public sector and private sector banks
have increased by about three times in comparison to the advances in 1999. Thus, from the
analysis it can be concluded that in terms of Advances by Commercial Banks, the highest
growth has been recorded by the private sector banks as (22.46) and the lowest growth in
foreign banks (17.99). The growth of advances in SBI group is (19.69) which are slightly
higher than foreign banks (17.99) but slightly lower than public sector (21.20) and private
sector banks (22.46).

Table 5: Trend of Ratios of Non-performing Assets of
State Bank India and its Associates

Ratios SBI SBBJ SBH SBIND SBM SBP SBS SBT

Net NPAs/Net -14.36 -24.53 -35.92 -25.32 -29.92 -25.25 -21.11 -23.76
Advance
Gross NPAs/Total -16.59 -21.96 -27.61 -22.68 -22.60 -22.44 -23.29 -21.84
Advance
Net NPAs/Total -9.97 -20.48 -33.52 -21.99 -27.62 -22.46 -18.51 -19.59
Assets

Net NPAs/Net -14.36 -24.53 -35.92 -25.32 -29.92 -25.25 -21.11 -23.76
Advance
Operating Expenses/ -0.85 -0.12 -0.37 -0.48 -0.84 0.12 0.00 -0.71
Total Income
Contd...

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