Indian Banks : Just see GNPA Numbers =Rs 5.7 trillion as of 31st March

-Publicly traded banks in India have just endured the worst six months since March 2001.

-They reported the fastest accretion of bad loans, mounting provisions and loss of capital in the two straight quarters ended 31 March as the country’s central bank forced the lenders to adequately disclose soured loans and set aside more money to cover them. As a result, aggregate profit of 38 listed banks that have reported their earnings so far fell by 66% for the year ended 31 March.

-Gross non-performing assets of the 38 out of 39 listed banks stood at an unprecedented Rs.5.7 trillion as of 31 March, as lenders added a trillion rupees worth of bad loans in each of the quarters ended December 2015 and March 2016, according to data compiled by Capitaline. Dhanlaxmi Bank, the only listed bank that has not reported its earnings, is scheduled to announce its results on Monday.

-Bad loans in the Indian banking sector surged 60% between October and March and aggregate loan disbursal in the period expanded by just 4%.

-The clean-up drive has resulted in deep losses for 13 out of the 38 lenders. State-controlled banks fared the worst, reporting an aggregate loss of Rs.15,064 crore for fiscal 2016. The private sector banks reported a slower 6.46% profit growth.

-Indeed, much of the pain was felt in the fiscal fourth quarter, when the public sector lenders reported an aggregate loss of Rs.23,493 crore and their private sector counterparts reported an aggregate profit ofRs.8,807.48 crore—a 14% decline from the year earlier.

-The country’s largest lender, State Bank of India (SBI), too is cautious on asset quality.

–Chairman Arundhati Bhattacharya said the lender has identified Rs.31,352 crore worth of risky loans and kept them on a “special watch”.

The bank, following a conservative approach, expects 70% of these loans to slip into the bad loan category. The banking behemoth’s net profit for the quarter ended 31 March 2016 dropped 66% to Rs.1,263.81 crore as its pile of bad loans swelled to Rs.98,173 crore.