http://www.business-standard.com/article/finance/at-rs-4-lakh-cr-bad-loans-exceed-market-value-of-psbs-116022100346_1.html
The gross NPAs of banking sector are estimated at over 5% of total loans, while overall stressed assets (including declared and potential bad loans) are at about 11%.
An analysis of their latest quarter results shows that the cumulative gross NPAs of 24 listed public sector banks, including market leader SBI and its associates, stood at Rs 3,93,035 crore as on December 31, 2015.
This is nearly 1.5-times of their total market value, which currently stands at Rs 2,62,955 crore.
This also marks a rise of over 50% from their gross NPAs totalling Rs 2,61,918 crore a year ago.
As per RBI, an asset becomes non-performing when it ceases to generate income for the bank. The banks need to declare a loan as NPA which remains overdue for more than 90 days.
Except for State Bank of India (SBI), and a few smaller ones, all listed public sector banks have gross NPAs in excess of their market capitalisation. In most cases, the quantum of bad loans is more than double the market value, while some lenders have gross NPAs as high as four or five-times of their respective market valuations.
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