News: Foreign banks in India reduce gross, net NPAs

(BL 23/04/2006) New Delhi - Foreign banks operating in India outperformed domestic banks in non-performing assets (NPAs), both in gross and net terms in the financial year 2004-05, says a study carried out by industry chamber Assocham.

After witnessing rise in NPAs for two consecutive years, foreign banks cut down their gross NPAs by 32 per cent on a year-to-year basis during 2004-05 compared to 30 per cent reduction by private sector banks and eight per cent by public sector banks for the same period, according to the study.

In addition to gross NPAs, the foreign banks have also shown a reduction of 38 per cent in their net NPAs in 2004-05, according to the study.