Some noticeable greatest increase in Net Non Performing Assets (NNPAs) is observed among the big banks. In fisrt bank among that is HDFC Bank it has increasing rate of 119.58 percent, then the next following bank is Canara Bank, it is having the increment of 89.46 percent. Next one is Axis Bank this recorded the third largest increment of having the 45.97 percent. These are the top three large banks (Microcredit Innovations Department, 2006). (Gaurav Sharma, 2009)
In the middle of the top three, there are some medium size banks. But these banks have the maximum rise in the NNPAs in that the number one with the highest percentage of 120.56 is State Bank of Mysore. Next one is with the percentage of 76.10 is Vijaya Bank followed with the percentage of 67.14 by the State Bank of Hyderabad.
After that in the small size banks in NNPAs, the highest increasing rate of 91.75 percent is by Kotak Mahindra Bank the with the increasing rate of 83.56 percent and 66.46 percent are ING Vysya Bank then the Bank of Rajasthan (Pankaj Sinha, 2010).
| Name of the bank | Net Non Performing Assets | ||
| Q3 FY08-09
Rs Crore |
Q3 FY07-08
Rs Crore |
% Change | |
| Top 3 Large size banks with maximum rise in net NPAs | |||
| HDFC Bank | 614.33 | 279.78 | 119.58 |
| Canara Bank | 1654.23 | 873.15 | 89.46 |
| Axis Bank | 341.94 | 234.26 | 45.97 |
| Top 3 Medium size banks with maximum rise in net NPAs | |||
| State Bank of Mysore | 154.57 | 70.08 | 120.56 |
| Vijaya Bank | 263.25 | 149.49 | 76.10 |
| State Bank of Hyderabad | 142.20 | 85.08 | 67.14 |
| Top 3 Small size banks with maximum rise in net NPAs | |||
| Kotak Mahindra Bank Limited | 470.07 | 245.15 | 91.75 |
| Ing Vysya Bank Limited | 175.13 | 95.41 | 83.56 |
| The Bank of Rajasthan Limited | 53.97 | 32.42 | 66.46 |
2. Legal devices to set out bad loans were reduces the time and is very costly and NPAs stayed on the balance sheet.
3. Expansionary fiscal policy evaluates Governed to encourage the financial system maintained business sectors such as real estate and construction that can have more exacerbated the difficulty
4. Crony Capitalism to the Keiretsus
5. Governance of Weak corporate joined with doctrine a no-bankruptcy in financial system of Japan was a moral hazard.
6. System of Inadequate accounting and data flow generates loan assessment act external in problem of Japan.
- Measures
1. Foreign exchange control law Amendment (l997) and the suspension risk of banking industry as in failure case to approve the capital adequacy ratio.
Legislation in order to increase the data flow has been conceded.
2. Accounting standards – main business groups initiated a setting vehicle of private standard for (2001) Japanese accounting standards in procession through the Global standards.
3. Government Support – commitment of the public investments to contract with the weakness of the banking sector (Sumant Batra, 2003).