Covid crisis: Non-performing assets on the rise in banks in Kerala

Sanila Arjun

Representational image | Photo: Jayesh P | Mathrubhumi

Kochi: The non-performing assets (NPAs) are on the rise in banking sector across the state highlighting the impact of the Covid crisis on the economy. The bad debts of public sector banks in Kerala increased by 10.26 percent within three months.

Total NPA of Public Sector Banks in Kerala, including Kerala Gramin Bank, rose to Rs 9693.27 crores during the April-June quarter of the current financial year. This was Rs 8791.05 crores during the January-March quarter of the previous fiscal year. There is a considerable increase of Rs 902.22 crores.

Meanwhile, the total non-performing assets (NPAs) of private sector bank branches (excluding microfinance institutions) rose to Rs 8328.01 crore in the June quarter from Rs 6847.68 crore recorded in the previous quarter.

Non-performing loans (NPL) of small finance banks increased from Rs 219.9 crore to Rs 510.07 crore. The NPL of Co-operative banks rose to Rs 16,531.88 crore from Rs 11,515.28 crores during the period. Interestingly, most NPAs are identified to be from Co-operative Banks in the state.

In case of the recovery of the bad debt, the public sector stands ahead of private sector banks. During the April-June period of the current financial year, public sector banks recovered bad debts worth Rs 2395.83 crores. Meantime, only Rs 1598.23 crores was recovered by the private sector and Rs 172.1 crores by small finance banks in the state. Co-operative banks on the other hand recovered Rs 974.99 crore of bad debts in the April-June quarter.

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