NPA is defined as an advance for which interest or repayment of principal or

both remain out standing for a operiod f more than two quarters. The level
of NPA act as an indicator showing the bankers credit risks and efficiency of
allocation of resource.

Reasons:
Various studies have been conducted to analysis the reasons for NPA. What ever may be
complete elimination of NPA is impossible. The reasons may be widely classified in two:

(1) Over hang component

(2) Incremental component

Over hang component is due to the environment reasons, business cycle etc.

Incremental component may be due to internal bank management, credit policy, terms of credit
etc.
Asset Classification :

The RBI has issued guidelines to banks for classification of assets into
four categories.

1 . Standard assets :
These are loans which do not have any problem are less risk.

2 . Substandard assets :
These are assets which come under the category of NPA for a period of
less then 12 months.

3 . Doubtful assets :
These are NPA exceeding 12 months

4 . Loss assets:
These NPA which are identified as unreliable by internal inspector of
bank or auditors or by RBI.
The classification of assets of scheduled commercial bank.
(Amount Rs. crores)

Totalstandard
Assets
Standard
Sub
Doubtful
Loss assets
NPAassets 63963
2001
494716
18206
37756
8001 70953
2002
609972
21382
41201
8370 68780
2003
709260
20078
39731
8971 902027
2004
837130
21026
36247
7625
assets (88.6)
(3.3)
(6.8)
(1.4)
(11.4) (89.6)
(3.1)
(6.1)
(1.2)
(10.4) (91.2)
(2.6)
(5.1)
(1.2)
(8.8) (92.8)
(2.3)
(4.36)
(0.8)
(100)
 ross and net NPA of different sector of bank
(end of March 31) (in %)
category Gross NPA/ Gross Advance
2001 2002 2003 2004
Public sector bank 12.37 11.09 9.36 7.79

Private sector 8.37 9.64 8.07 5.84

Foreign bank 6.84 5.38 5.25 4.62

(end of March 31) (in %)
category Net NPA / Net Advance
2001 2002 2003 2004
Public sector bank 6.74 5.82 4.53 2.98

Private sector 2.27 2.49 2.32 1.32

Foreign bank 1.82 1.89 1.76 1.49
Appendix Table IV.29(A): Non-Performing Assets of Public Sector Banks – Sector-wise(As at end-March 2009)

(Amount in Rs. crore)

Sr. Name of the Bank Agriculture Small Scale Industries
Others Priority Sector Public Sector Non-Priority Sector Total
No.

Amo Per Amo Per Amo Per Amo Per Amo Per cent to Amo Per cent to Amount
unt cent to unt cent to unt cent to unt cent to unt total unt total
total total total total

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Public Sector Banks 5708 13.0 6984 15.9 11,626 26.4 24,318 55.2 474 1.1 19,251 43.7 44,042
Nationalised Banks 3,707 14.2 4,958 18.9 7,206 27.5 15871 60.6 297 1.1 10,001 38.2 26,169
1 Allahabad Bank 203 18.8 185 17.2 283 26.3 671 62.3 17 1.6 389 36.1 1077
2 Andhra Bank 17 4.5 61 16.6 80 21.6 157 42.7 2 0.5 209 56.8 368
43 Bank of India
Baroda 225
336 13.5
15.3 307
594 18.5
27.1 287 29.0
634 17.3 820 71.4
1564 49.2 –2 –0.1 843
626 50.7
28.6 1664
2190
5 Bank of Maharashtra 112 14.0 80 10.0 335 42.0 527 66.1 22 2.7 249 31.2 798
6 Canara Bank 287 13.4 180 8.4 465 21.8 932 43.6 – – 1207 56.4 2139
7 Central Bank of India 417 18.0 659 28.4 512 22.1 1587 68.4 59 2.5 675 29.1 2320
8 Corporation Bank 79 14.2 83 14.9 210 37.6 373 66.7 – – 186 33.3 559
9 Dena Bank 55 8.8 132 21.3 226 36.4 413 66.5 – – 208 33.5 621
10 Indian Bank 27 6.4 77 18.0 119 27.8 223 52.2 – – 204 47.8 426
11 Indian Overseas Bank 156 8.6 339 18.7 278 15.3 773 42.7 30 1.7 1007 55.7 1810
12 Oriental Bank of 133 12.6 182 17.2 295 27.9 610 57.6 1 – 448 42.3 1058
Commerce
13 Punjab and Sind Bank 18 11.3 59 36.6 16 10.0 93 58.0 – – 68 42.0 161
14 Punjab National Bank 537 19.4 1000 36.2 899 32.5 2436 88.0 1 – 331 12.0 2767
15 Syndicate Bank 166 10.5 177 11.1 457 28.7 801 50.3 27 1.7 764 48.0 1592
16 UCO Bank 285 18.5 180 11.7 541 35.2 1007 65.4 14 0.9 519 33.7 1540
17 Union Bank of India 270 14.0 198 10.3 804 41.8 1272 66.1 124 6.5 527 27.4 1923
18 United Bank of India 191 18.7 231 22.6 295 28.9 717 70.3 – – 303 29.7 1020
19 Vijaya Bank 75 10.7 164 23.5 247 35.3 486 69.5 – – 213 30.5 699
Other Public Sector Bank

20 IDBI Bank Ltd. 118 8.2 69 4.8 223 15.5 410 28.6 – – 1026 71.4 1436

State Bank Group 2,001 11.2 2,026 11.3 4,420 24.7 8,447 47.3 177 1.0 9,250 51.8 17874

21 State Bank of 7 1.4 38 7.7 135 27.5 180 36.6 – – 311 63.4 490
Bikaner and Jaipur
22 State Bank of 23 4.7 56 11.5 135 27.7 214 43.9 – – 272 56.1 486
Hyderabad
23 State Bank of India 1,789 11.8 1,712 11.3 3,509 23.2 7,010 46.4 163 1.1 7,932 52.5 15105

24 State Bank of 18 5.9 19 6.5 82 27.4 120 39.7 10 3.4 171 56.9 301
Indore
25 State Bank of 25 6.8 62 16.8 116 31.5 203 55.1 – – 165 44.9 368
Mysore
26 State Bank of 110 19.1 61 10.7 166 28.9 336 58.6 – – 238 41.4 574
Patiala
27 State Bank of 29 5.3 78 14.2 277 50.5 384 70.0 3 0.6 161 29.4 549
Travancore
Appendix Table IV.29(B): Non-Performing Assets of Private Sector Banks – Sector-wise(As at end-March 2009)
(Amount in Rs. crore)
Sr. Name of the Bank Agriculture Small Scale Industries
Others Priority Sector Public Sector Non-Priority Sector
Total
Amou
nt
No. Amo Per cent Amo Per cent Amo Per cent Amo Per cent Amo Per cent Amo Per cent
unt to total unt to total unt to total unt to total unt to total unt to total
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Private Sector Banks 1441 8.5 670 4.0 1529 9.1 3640 21.6 75 0.4 13172 78.0 16887
Old Private Sector Banks 263 8.6 307 10.0 663 21.6 1233 40.1 – – 1839 59.9 3072
1 Bank of Rajasthan Ltd. 4 2.3 20 12.4 24 14.7 47 29.4 – – 114 70.6 161
2 Catholic Syrian Bank Ltd. 16 9.6 26 14.9 56 32.4 98 56.8 – – 74 43.2 172
3 City Union Bank Ltd. 4 3.5 5 4.7 16 15.8 24 24.0 – – 78 76.0 102
4 Dhanalakshmi Bank Ltd. 4 5.6 6 9.0 20 31.3 30 45.9 – – 35 54.1 64
5 Federal Bank Ltd. 68 11.5 20 3.4 193 32.8 281 47.7 – – 308 52.3 590
6 ING Vysya Bank Ltd. 32 15.5 26 12.3 6 2.7 64 30.4 – – 146 69.6 209
7 Jammu and Kashmir Bank Ltd. 30 5.3 46 8.3 156 28.0 232 41.6 – – 327 58.4 559
8 Karnataka Bank Ltd. 49 11.1 56 12.6 62 14.0 167 37.7 – – 276 62.3 443
9 Karur Vysya Bank Ltd. 5 2.4 40 19.2 18 8.5 62 30.2 – – 144 69.8 206
10 Lakshmi Vilas Bank Ltd. 10 6.7 10 6.7 12 8.6 32 22.0 – – 112 78.0 144
11 Nainital Bank Ltd. 4 21.0 3 15.0 8 40.5 15 76.6 – – 4 23.4 19
12 Ratnakar Bank Ltd. 2 11.9 5 31.2 6 34.6 13 77.7 – – 4 22.3 17
13 SBI Commercial and International Bank – – – – 2 35.5 2 35.5 – – 3 64.5 5
Ltd.
14 South Indian Bank Ltd. 15 5.7 25 9.6 63 24.3 103 39.6 – – 157 60.4 261
15 Tamilnad Mercantile Bank Ltd. 21 17.5 20 17.1 21 17.9 63 52.5 – – 57 47.5 120
New Private Sector Banks 1178 8.5 363 2.6 866 6.3 2407 17.4 75 0.5 11334 82.0 13815
16 Axis Bank Ltd. 123 13.8 9 1.0 166 18.6 297 33.4 75 8.4 519 58.2 890
17 Development Credit Bank Ltd. 9 3.0 28 9.3 2 0.7 40 13.1 – – 266 86.9 306
18 HDFC Bank Ltd. 101 5.1 211 10.6 67 3.4 380 19.1 – – 1604 80.9 1984
19 ICICI Bank Ltd. 874 9.1 15 0.2 560 5.9 1449 15.1 – – 8116 84.9 9565
20 IndusInd Bank Ltd. 34 13.2 1 0.3 64 25.2 99 38.7 – – 156 61.3 255
21 Kotak Mahindra Bank Ltd. 37 5.1 99 13.5 6 0.8 143 19.5 – – 588 80.5 731
22 Yes Bank Ltd. – – – – – – – – – – 85 100.0 85
Appendix Table IV.30(B) : Non-Performing Assets in Advances to Weaker Sections underPriority Sector – Private
Sector Banks(As at end March 2009)
(Amount in Rs. crore)
Sr. Name of the Bank Advances to Weaker Sections
No. Total of which : NPAs
Amount Per cent
1 2 3 4 5
Private Sector Banks 15,052 91 0.6
Old Private Sector Banks 5,538 77 1.4
1 Bank of Rajasthan Ltd. 106 7 6.8
2 Catholic Syrian Bank Ltd. 48 11 23.6
3 City Union Bank Ltd. 211 – 0.2
4 Dhanalakshmi Bank Ltd. 221 3 1.5
5 Federal Bank Ltd. 905 – –
6 ING Vysya Bank Ltd. 358 4 1.0
7 Jammu and Kashmir Bank Ltd. 2,031 17 0.8
8 Karnataka Bank Ltd. 150 5 3.0
9 Karur Vysya Bank Ltd. 534 21 4.0
10 Lakshmi Vilas Bank Ltd. 329 – 0.1
11 Nainital Bank Ltd. – – –
12 Ratnakar Bank Ltd. – – –
13 SBI Commercial and International Bank Ltd. – – –
14 South Indian Bank Ltd. 272 8 2.9
15 Tamilnad Mercantile Bank Ltd. 372 – 0.1
New Private Sector Banks 9,514 14 0.1
16 Axis Bank Ltd. 3,671 – –
17 Development Credit Bank Ltd. 210 – –
18 HDFC Bank Ltd. 1,108 5 0.4
19 ICICI Bank Ltd. 2,065 – –
20 IndusInd Bank Ltd. 1,275 – –
21 Kotak Mahindra Bank Ltd. 536 10 1.8
22 Yes Bank Ltd. 649 – –
– : Nil/Negligible.
Source : Based on off-site returns submitted by banks.
Appendix Table IV.27: Non-Performing Assets as percentage of Total Assets –Scheduled Commercial Banks (Continued)
(Per cent)
Sr. No. Name of the Bank Gross NPAs/Total Assets Net NPAs/Total Assets
2004-05 2005-06 2006-07 2007-08 2008-09 2004-05 2005-06 2006-07 2007-08 2008-09
1 2 3 4 5 6 7 8 9 10 11 12
Scheduled Commercial Banks 2.5 1.8 1.5 1.3 1.3 0.9 0.7 0.6 0.6 0.6
Public Sector Banks 2.7 2.1 1.6 1.3 1.2 1.0 0.7 0.6 0.6 0.6
Nationalised Banks 3.0 2.2 1.6 1.3 1.1 0.9 0.6 0.5 0.4 0.4
1 Allahabad Bank 2.8 2.1 1.6 1.2 1.1 0.6 0.4 0.7 0.5 0.4
2 Andhra Bank 1.3 1.1 0.8 0.7 0.5 0.1 0.1 0.1 0.1 0.1
3 Bank of Baroda 3.5 2.1 1.5 1.1 0.8 0.7 0.5 0.4 0.3 0.2
4 Bank of India 3.3 2.2 1.5 1.1 1.1 1.6 0.9 0.4 0.3 0.3
5 Bank of Maharashtra 2.9 3.0 2.1 1.6 1.4 0.9 1.1 0.7 0.5 0.5
6 Canara Bank 2.1 1.3 0.9 0.7 1.0 1.0 0.7 0.6 0.5 0.7
7 Central Bank of India 3.8 3.6 2.8 1.9 1.6 1.2 1.3 0.9 0.9 0.7
8 Corporation Bank 1.9 1.5 1.2 0.9 0.6 0.6 0.4 0.3 0.2 0.2
9 Dena Bank 4.8 3.6 2.4 1.5 1.3 2.5 1.6 1.2 0.6 0.6
10 Indian Bank 1.7 1.4 1.0 0.7 0.5 0.6 0.4 0.2 0.1 0.1
11 Indian Overseas Bank 2.7 2.1 1.4 1.0 1.6 0.6 0.4 0.3 0.4 0.8
12 Oriental Bank of Commerce 4.6 3.6 2.0 1.4 0.9 0.6 0.3 0.3 0.6 0.4
13 Punjab & Sind Bank 7.6 4.9 1.3 0.4 0.4 3.2 1.2 0.4 0.2 0.2
14 Punjab National Bank 3.0 2.2 2.1 1.7 1.1 0.1 0.1 0.4 0.4 0.1
15 Syndicate Bank 2.7 2.5 1.7 1.7 1.2 0.8 0.5 0.4 0.6 0.5
Appendix Table IV.27: Non-Performing Assets as percentage of Total Assets –Scheduled Commercial Banks (Continued)
(Per cent)
Sr. No. Name of the Bank Gross NPAs/Total Assets Net NPAs/Total Assets
2004-05 2005-06 2006-07 2007-08 2008-09 2004-05 2005-06 2006-07 2007-08 2008-09
16 UCO Bank 2.6 2.0 2.0 1.8 1.4 1.5 1.3 1.3 1.2 0.7
17 Union Bank of India 2.8 2.4 1.8 1.3 1.2 1.5 0.9 0.6 0.1 0.2
18 United Bank of India 2.5 2.2 1.9 1.4 1.6 1.0 0.9 0.8 0.6 0.8
19 Vijaya Bank 1.5 1.7 1.3 0.9 1.1 0.3 0.5 0.3 0.3 0.5
State Bank Group 2.5 1.8 1.6 1.5 1.4 1.0 0.9 0.8 0.8 0.8
20 State Bank of India 2.7 1.9 1.8 1.8 1.6 1.2 1.0 0.9 1.0 1.0
21 State Bank of Bikaner & Jaipur 1.7 1.4 1.3 1.1 1.1 0.8 0.7 0.6 0.5 0.5
22 State Bank of Hyderabad 1.6 1.1 0.7 0.5 0.6 0.3 0.2 0.1 0.1 0.2
23 State Bank of Indore 1.8 1.8 1.2 0.9 0.9 0.5 1.0 0.6 0.5 0.6
24 State Bank of Mysore 2.5 2.1 1.4 1.1 0.9 0.5 0.4 0.3 0.3 0.3
25 State Bank of Patiala 2.1 1.3 1.1 0.9 0.8 0.6 0.5 0.5 0.4 0.4
26 State Bank of Saurashtra 1.2 1.0 0.6 0.8 – 0.6 0.6 0.4 0.5 –
27 State Bank of Travancore 2.3 1.9 1.4 1.3 1.1 0.9 0.9 0.7 0.6 0.4
Other Public Sector Bank
28 IDBI Bank Ltd. 1.5 1.3 1.2 1.2 0.8 1.0 0.6 0.7 0.8 0.6
Appendix Table IV.28: Non-Performing Assets as percentage of Advances –Scheduled Commercial Banks (Continued)
(Per cent)
Sr. Name of the Bank Gross NPAs/Gross Advances Net NPAs/Net Advances
No. 2004-05 2005-06 2006-07 2007-08 2008-09 2004-05 2005-06 2006-07 2007-08 2008-09
1 2 3 4 5 6 7 8 9 10 11 12
Scheduled Commercial Banks 5.2 3.3 2.5 2.3 2.3 2.0 1.2 1.0 1.0 1.1
Public Sector Banks 5.5 3.6 2.7 2.2 2.0 2.1 1.3 1.1 0.8 0.7
Nationalised Banks 5.8 3.8 2.7 2.1 1.8 1.9 1.2 0.9 0.7 0.7
1 Allahabad Bank 5.8 3.9 2.6 2.0 1.8 1.3 0.8 1.1 0.8 0.7
2 Andhra Bank 2.5 1.9 1.4 1.1 0.8 0.3 0.2 0.2 0.2 0.2
3 Bank of Baroda 7.3 3.9 2.5 1.8 1.3 1.5 0.9 0.6 0.5 0.3
4 Bank of India 5.5 3.7 2.4 1.7 1.7 2.8 1.5 1.0 0.5 0.4
5 Bank of Maharashtra 7.0 5.5 3.5 2.6 2.3 2.2 2.0 1.2 0.9 0.8
6 Canara Bank 3.9 2.3 1.5 1.2 1.6 1.9 1.1 0.9 0.8 1.1
7 Central Bank of India 9.5 6.9 4.8 3.2 2.7 3.0 2.6 1.7 1.5 1.2
8 Corporation Bank 3.4 2.6 2.1 1.5 1.1 1.1 0.6 0.5 0.3 0.3
9 Dena Bank 9.7 6.4 4.1 2.4 2.1 5.2 3.0 2.0 0.9 1.1
10 Indian Bank 4.2 2.9 1.9 1.2 0.9 1.4 0.8 0.4 0.2 0.2
11 Indian Overseas Bank 5.3 3.4 2.3 1.6 2.5 1.3 0.7 0.5 0.6 1.3
12 Oriental Bank of Commerce 9.1 6.0 3.2 2.3 1.5 1.3 0.5 0.5 1.0 0.7
13 Punjab and Sind Bank 17.2 9.6 2.4 0.7 0.7 8.1 2.4 0.7 0.4 0.3
14 Punjab National Bank 6.0 4.1 3.5 2.7 1.8 0.2 0.3 0.8 0.6 0.2
15 Syndicate Bank 5.2 4.0 3.0 2.7 1.9 1.6 0.9 0.8 1.0 0.8
16 UCO Bank 5.0 3.3 3.2 3.0 2.2 2.9 2.1 2.1 2.0 1.2
17 Union Bank of India 5.0 3.8 2.9 2.2 2.0 2.6 1.6 1.0 0.2 0.3
18 United Bank of India 6.1 4.7 3.6 2.7 2.9 2.4 2.0 1.5 1.1 1.5
19 Vijaya Bank 2.9 3.2 2.3 1.6 1.9 0.6 0.9 0.6 0.6 0.8
Appendix Table IV.28: Non-Performing Assets as percentage of Advances –Scheduled Commercial Banks (Continued)

(Per cent)

Sr. Name of the Bank Gross NPAs/Gross Advances Net NPAs/Net Advances

No. 2004-05 2005-06 2006-07 2007-082008-09 2004-05 2005-062006-07 2007-082008-

09
1 2 3 4 5 6 7 8 9 10 11 12

State Bank Group 5.3 3.3 2.6 2.6 2.5 2.2 1.6 1.3 1.4 1.5

20 State Bank of India 6.0 3.6 2.9 3.0 2.8 2.7 1.9 1.6 1.8 1.8

21 State Bank of Bikaner and 3.3 2.4 2.2 1.7 1.6 1.6 1.2 1.1 0.8 0.9
Jaipur
22 State Bank of Hyderabad 3.5 2.1 1.2 0.9 1.1 0.6 0.4 0.2 0.2 0.4

23 State Bank of Indore 3.3 3.0 1.9 1.4 1.4 1.0 1.8 1.0 0.7 0.9

24 State Bank of Mysore 4.6 3.3 2.3 1.7 1.4 0.9 0.7 0.5 0.4 0.5

25 State Bank of Patiala 4.1 2.4 1.8 1.4 1.3 1.2 1.0 0.8 0.6 0.6

26 State Bank of Saurashtra 2.7 1.9 1.1 1.4 – 1.4 1.2 0.7 0.9 –

27 State Bank of Travancore 4.3 3.2 2.2 2.0 1.7 1.8 1.5 1.1 0.9 0.6

Other Public Sector Bank

28 IDBI Bank Ltd. 2.9 2.0 1.9 1.9 1.4 1.7 1.1 1.1 1.3 0.9