The situation in the non-housing segment is expected to be worse
Gross NPAs of the bank came down 12.6 per cent to Rs 1,020.98 crore, or 3.62 per cent of gross advances, from Rs 1168.11 crore (4.32 per cent) the previous year
The bank had posted a net loss of Rs 3,369.23 crore during the same quarter of the previous financial year
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Gross NPAs of SCBs, which stood at Rs 10,36,187 crore on March 31, 2018, declined by Rs 97, 996 crore to Rs 9,38,191 crore as on June 30, 2019
The report further said profitability of all commercial banks declined, partly reflecting increased provisioning
With banks' earlier indications of their bad-loan situation being under control, the markets were expecting a stable asset quality profile for the September quarter. However, this has been hit by the Reserve Bank of India's recent diktat in this regard. Gross NPAs for seven private banks which have declared their quarterly results so far rose 55 per cent over a year before to Rs 35,772 crore by end-September. Compared to the June quarter, these were up 20 per cent.RBI told banks to reclassify some major loans as NPAs for FY17 and make provision. Two private lenders, Axis Bank and Lakshmi Vilas Bank, were hit significantly in the September quarter 2017 by this directive. By the rule, if RBI's assessment of bad debt numbers for a financial year differs from the bank's assessment by more than 15 per cent, the total divergence should be disclosed.Provisions and contingencies, predominantly the amount set aside for NPAs, grew only 3.6 per cent to Rs 4,508 crore over a year before. On a ...