Among private banks, ICICI Bank, whose MD and CEO Chanda Kochhar is facing allegations of conflict of interest while sanctioning loans to the Videocon Group, topped the NPA table with Rs 54,063 crore in bad loans.
Mumbai: Data over the last five years shows that private banks have been steadily accumulating bad loans, with a 450 per cent rise in gross Non-Performing Assets (NPAs) of these banks — from Rs 19,800 crore at the end of financial year 2013-2014 to Rs 109,076 crore at the end of March 2018.
What has contributed to this rise in NPAs of private banks is the RBI’s February 13 circular, which changed the rules governing the restructuring of stressed assets, besides the central bank’s tough stance against divergence of NPAs. “Some private banks were understating NPAs earlier; now they have to disclose them,” said a banking source.
Among private banks, ICICI Bank, whose MD and CEO Chanda Kochhar is facing allegations of conflict of interest while sanctioning loans to the Videocon Group, topped the NPA table with Rs 54,063 crore in bad loans. That’s a 514 per cent jump in NPAs in five years — from Rs 10,506 crore at the end of financial year 2013-14 to Rs 54,063 crore at the end of March 2018.
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