Central Bank tops list with highest NPAs among PSU banks

Written By Unknown on Senin, 06 April 2015 | 08.11

Central Bank of India has topped the list of public sector banks with maximum bad loans including restructured assets as a percentage of total advances.

Central Bank of India  has topped the list of public sector banks with maximum bad loans including restructured assets as a percentage of total advances. According to the data provided by the RBI to the Finance Ministry, Central Bank of India's 21.5 per cent assets are either bad or have been restructured to save them turning non-performing assets (NPAs). The other banks which have significant amount of gross NPAs and restructured loans include,  United Bank of India (19.04 per cent),  Punjab & Sind Bank (18.25 per cent) and  Punjab National Bank with 17.85 per cent as on December 2014.

Indian Overseas Bank , State Bank of Patiala,  Allahabad Bank and  Oriental Bank of Commerce all have bad and restructured loans in excess of 15 per cent. The rising bad loans have become a major concern for the Reserve Bank as well as the government. Most of the restructured loans is from the corporate sector.

The top-30 defaulters are sitting on bad loans of Rs 95,122 crore, which is more than one-third of the gross non-performing assets of PSU banks at Rs 2,60,531 crore as on December 2014. There are four kinds of restructuring. The first and foremost is restructuring of advances extended to industrial units, restructuring under Corporate Debt Restructuring and restructuring of loans extended to MSME as per RBI guidelines.

Also Read: Dena Bank plans lower price to sell around Rs 500 cr NPAs

However, banks have their own operational rule for restructuring of small loans. RBI has not prescribed any board or bank level position at which these loans need to be approved.

Central Bank stock price

On April 01, 2015, Central Bank of India closed at Rs 105.25, down Rs 1.25, or 1.17 percent. The 52-week high of the share was Rs 121.00 and the 52-week low was Rs 48.30.


The company's trailing 12-month (TTM) EPS was at Rs 3.59 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 29.32. The latest book value of the company is Rs 87.32 per share. At current value, the price-to-book value of the company is 1.21.


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