Top 5 Banks Whose NPAs Have Reduced On Both Sequential And Yearly Basis In Q3FY14

In the December quarter of FY14 most of the bank’s net Non-Performing Assets (NPAs) has increased. But there were some banks who posted a decrease in their NPAs. Here are the five banks which have showed a drop in its net NPAs against September quarter (FY14) and also compared to the December quarter FY13 net NPA.

To arrive at the table we have used the below mentioned filters:

• We have taken only listed banks, both public and private sector.
• The final table is based on top five banks, where the net NPA has decreased on both sequential basis and yearly basis.
• The final list is sorted based on highest decline in net NPA showed on sequential basis. 

Vijaya Bank : The public sector bank's major business includes wholesale banking. It has shown the highest reduction (among the top five) in its net non-performing assets (NPA) on sequential basis in Q3FY14. Net NPA decreased by 18 basis points to 1.57% in December quarter FY14. On yearly basis its net NPA dropped by 14 basis points from 1.71% in Q3FY13. The central government holds 59.8% stake in the bank. 

Federal Bank : Federal bank which is a private sector bank takes second position. The bank has showed a decline of 12 basis points (0.86% in Q3FY14) in its net NPA on sequential basis. The bank is majorly involved in retail banking business.

Bank of India : At the third position it’s again a public sector bank, which has showed a decline in its net NPA of 10 basis points sequentially (1.75% in Q3FY14) and on YoY basis reduced by 22 basis points.  Promoters (Government of India) hold 66.7% stake in the bank. The bank earns its major revenue from the wholesale banking operations.

Central Bank Of India : The government of India holds 88.63% stake in the bank. This bank showed a decline of 8 basis points (from 3.77% for Q2FY14) in its net NPA on sequential basis. On yearly basis its net NPA decreased by 10 basis points. The banks major interest income is driven from its wholesale banking segment. 

UCO Bank : The public sector bank having a 69.26% holding of Central Government is engaged in various banking operations with its major exposure to corporate/wholesale segment. Its net NPA for December quarter FY14 reduced by 7 basis points (QoQ) to 3.06% and on yearly basis it reduced by 26 basis points. This is the only bank that has shown consistent decline in its net NPA in last five quarters.