20 listed banks which announced results for Q4FY16, have reported additional gross non-performing assets (NPAs) at ₹21,192 crore, with ICICI Bank alone accounting for almost a quarter of the amount. This puts the cumulative gross NPAs at more than ₹1 lakh crore. As many public banks are yet to report their results, the quantum of NPAs could rise.

As most of the public sector banks are yet to report their results, the quantum of gross NPAs could rise. Provisions set aside for NPAs by these banks cumulatively rose by 24.4% Q-o-Q to ₹11,839.2 crore after excluding exceptional provisions made by ICICI Bank.

ICICI has made an exceptional provision of ₹3,600 crore to cushion against more loans going bad in future. The bank reported a 76% year-on-year drop in profits for the quarter.

The rise in banks’ NPAs comes on the back of an extensive asset quality review (AQR) conducted by the Reserve Bank of India (RBI) last year, following which it had directed banks to come clean on stressed assets and make adequate provisions for them in the last two quarters of FY16.

The central bank had also asked each member of a consortium of banks to declare an account as NPA if a majority of the other members had done so.

 

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