The growing NPAs of banks in Jammu & Kashmir are reducing their appetite for disbursing loans, affecting development.
Despite its special status and separate constitution, in one respect Jammu and Kashmir is distressingly similar to the rest of India – banking non-performing assets (NPAs). As of end-December 2016, NPAs (as a percentage of advances) of 46 public and private sector banks in the state were somewhat lower than the national average – 6.93 per cent as against 9.1 per cent – but that is hardly a consolation considering the rate at which they are growing. In end-March 2015, bad loans had stood at ₹1,699 crore or 5 per cent of advances of ₹33,687 crore. By end December 2016, they had risen to ₹2,677 crore of total advances of ₹38,662 crore or 6.93 per cent. For public sector banks, NPA percentages are comparable – in J&K, 10.81 per cent of advances had turned NPAs by end-2016, when the all-India figure was 11 per cent.
The amount outstanding of PSU banks in end December was ₹7,659 crore. Of this, NPAs were ₹827 crore. The state’s private sector banks had lent much more and had higher NPAs too in absolute terms – ₹27,459 crore and ₹1,235 crore, respectively – though their NPA percentage was lower at 4.5 per cent. Regional rural banks and cooperative banks were in a far worse shape – with NPAs of 19.76 per cent and16.02 per cent, respectively.
Some top national banks have been badly affected, including Punjab National Bank, whose NPAs in the state amounted to 15.38 per cent (₹159 crore) of total advances of ₹1,037 crore. So are local banks such as J&K Grameen Bank, with NPAs of ₹229 crore, 17.18 per cent of total outstanding of ₹1,336 crore. Of State Bank of India’s ₹4,325 crore loans, ₹167 crore, or 3.87 per cent, had turned bad, while the state’s leading bank, J&K Bank, had outstanding loans of ₹25,455 crore, of which ₹1,002 crore, or 3.94 per cent, were NPAs in December-end 2016.
Bu hikaye Business Today dergisinin July 30, 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Today dergisinin July 30, 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
"Moving to cloud helped us grow❞
What was the problem you were grappling with?
She's Got Time
MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP
RISING STAR
PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.
Building on a Legacy
WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.
LEADER IN INNOVATION
AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.
WAITING IN THE WINGS
Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025
A DECENT PROPOSAL
IN TODAY'S WORLD OF TRYING TO CREATE AN EQUITABLE SPACE, BOTH MEN AND WOMEN CONTRIBUTE TO THEIR HOUSEHOLDS. WOMEN ARE ENCOURAGED TO HAVE THEIR OWN SAVINGS POOL AND INVESTMENT ROUTINE. GIVEN THIS, HOW SHOULD FUTURE BRIDES APPROACH FINANCIAL PLANNING?
Women and the STEM Bias
EMPOWERING WOMEN IN STEM WILL NOT ONLY BENEFIT INDIVIDUALS, BUT ALSO STRENGTHEN THE ENTIRE INDUSTRY, DRIVING INNOVATION AND PROGRESS.
ROCKET WOMEN
WOMEN IN INDIA ARE NOT ONLY VENTURING INTO SPACE BUT ARE ALSO STARTING TO SPEARHEAD THE COUNTRY'S EFFORTS IN THE GLOBAL SPACE RACE.
ONE STEP FORWARD
THE NUMBER OF WOMEN INDEPENDENT DIRECTORS IS GROWING STEADILY, BUT IT'S A LONG WAY FROM GENDER PARITY. MUCH MORE NEEDS TO BE DONE TO BREAK THE GLASS CEILING IN BOARDROOMS.