Comparative analysis of status of NPA at Bank of Baroda with NPA status of Top ten

Banks in India
As Bank of Baroda said to hold leadership position in the NPA management area in the
Indian Banking Sector more specifically among Public Sector Banks in India, So in this
particular sector to examine this claim, I will be doing comparative analysis of NPA trend at
Bank of Baroda with NPA trend of Top 10 Banks in India as rated by the Reserve Bank of
India (RBI). Top ten banks are as follows:
1) State Bank of India (SBI)
2) ICICI Bank
3) Punjab National Bank
4) Bank of Baroda
5) HDFC Bank
6) Canara Bank
7) Axis Bank
8) Bank of India
9) IDBI Bank
10) Union Bank of India
Note: Ranking of the top banks changes every year, but only among these ten banks (i.e.
these banks remain in top ten only)
Key Performance Indicators of these top ten banks are as follows:
Performance scorecard of Top 10 Banks in India as on 31st March 2013 & 2014.
Net
Ran
Global Business CASA
Profit
k
Banks
Crores
Deposit
Crores
Net NPA
2604238
44.43%
14489
2.57%
(2281297)
(46.50%)
(14105)
(2.10%)
1 SBI
671616
42.90%
9810
0.97%
(582863)
(41.90%)
(8325)
(0.66%)
2 ICICI Bank
800666
41.30%
3343
2.85%
Punjab National
(700285)
(40.86%)
(4748)
(2.07%)
3 Bank
965900
31.76%
4541
1.52%
(802069)
(30.38%)
(4481)
(1.06%)
4 Bank of Baroda
670337
44.80%
8478
0.30%
(608260)
(47.40%)
(6726)
(0.20%)
5 HDFC Bank
722000
25.90%
2438
1.98%
(598033)
(25.12%)
(2872)
(2.18%)
6 Canara Bank
510712
----6218
0.40%
(449580)
(36%)
(5179)
(0.27%)
7 Axis Bank
853202
----2729
2.00%
(674807)
(24.55%)
(2748)
(1.60%)
8 Bank of India
433460
22.63
1121
2.48%
(423423)
(25.12)
(1882)
(1.57%)
9 IDBI Bank

532007
29.50%
(475673)
(30.95%)
10 Union Bank of India
Note: March 2013 results are shown in the brackets

1696
(2158)

2.33%
(1.46%)

Comparative Analysis of NPA trend at Bank Of Baroda with the NPA trend of top ten
banks in India as listed above:
Gross NPA wise:
Rank

Gross NPA (Amt

in Cr.)
FY2013 FY2014
51189
61605
9608
10506
13466
18880
7983
11876
2899
2989
6260
7570
2393
3146
8765
11868
6450
9960

Banks
1
2
3
4
5
6
7
8
9

SBI
ICICI Bank
PNB
Bank of Baroda
HDFC Bank
Canara Bank
Axis Bank
Bank of India
IDBI Bank
Union Bank of
10 India

6314

9564

Status of Gross NPA as % of Gross Advances in Top ten banks In FY2013

4.11

3.74
3.17

2.77

2.69

2.57
2

1.97
0.97

0.93

Status of Gross NPA as % of Gross Advances in Top ten banks in FY2014

5.25

4.95

4.9
4.08

3.03

3.15

2.94

2.49
1

1.22

Data Interpretation:
The Table above shows Gross NPA at Top ten Banks in absolute terms and the Graph shows
Gross NPA as a percentage of Total Gross Advances in all respective ten banks. Gross NPA
wise HDFC Bank and Axis Bank were leading in both FY2013 & FY2014. Gross NPA Ratio
at HDFC Bank was 0.97% & 1.00% in FY2013 , FY2014 respectively, the same at Axis Bank
was 0.93% in FY2013 & 1.22% in FY2014.During the same period Bank of Baroda remained
in Top Five banks with lowest Gross NPAs. Gross NPA at Bank of Baroda was 1.97% &
2.94% in FY2013 & FY2014 respectively.

Net NPA wise:

Rank
1
2
3
4
5
6
7
8
9
10

Banks
SBI
ICICI Bank
PNB
Bank of Baroda
HDFC Bank
Canara Bank
Axis Bank
Bank of India
IDBI Bank
Union Bank of

Net NPA (Amt in

Cr.)
FY201
3
FY2014
21956
31096
2231
3298
7237
9917
4192
6035
2899
820
5278
5965
704
1025
5947
7417
3100
4902
3353
5340

India

Status of Net NPA as % of Net Advances in Top ten banks in FY2013.

3.74
2.18

2.1

1.6 1.57 1.46

1.06

0.65

0.27

0.2

Status of Net NPA as % of Net Advances in Top ten banks in FY2014.

2.85

2.57

2.48

2.33

1.98
1.52
0.97
0.3

0.4

Data Interpretation:
The same trend as Gross NPA has been noticed in Net NPAs of these ten banks in both the
financial years. Net NPA wise also HDFC Bank and Axis Bank topped the list of banks with
lowest NPAs, where in Bank of Baroda secured 4th Rank in both the financial years. The Net
NPA ratio at Bank of Baroda was 1.06% & 1.52% in FY2013 & FY2014 respectively.

The overall analysis

Top five banks with lowest NPAs
Rank Banks
2013
2014
1 HDFC Bank
0.20
0.30
2 Axis Bank
0.27
0.40
3 ICICI Bank
0.65
0.97
4 Bank of Baroda
1.06
1.52
5 Canara Bank
2.18
1.98
In the above table we see the ranking of banks with the lowest NPA level in FY2013 &
FY2014.If we compare the above list of banks with lowest NPAs with the list of top ten
banks , we see that State Bank of India undoubtedly was a leading bank in India in terms of
Number of branches, ATMs, Net Profits , total asset managed etc. in both the financial year
FY2013 & FY2014. But when it comes to asset quality management SBI loses the battle.
Among the Top ten banks, SBI was having the highest level of NPAs in both the FY2013 &
FY2014.The same case is with Punjab National Bank , even though PNB is the third largest
bank in India, but asset quality wise it is no where in the top list. But in contrary we see that
Bank of Baroda maintained its standard in all aspects, it ranked 4 th in the list of top ten
Banks in India, even asset quality management wise it maintained the same rank in
both FY2013 & FY2014.
The above table also justifies the claim of Bank of Baroda holding the leadership position in
NPA management area among all the Public Sector Banks in India . BoB is 4 th in the above
list of all commercial banks , but it holds 1 st rank among all Public sector banks in NPA
management area. The Below table shows the list of top five public sector Banks in India .
Top five Public Sector banks in India
Ran
Net NPA in
k
Banks
FY2013
1 SBI
2 Punjab National Bank
3 Bank of Baroda
4 IDBI Bank
5 Syndicate Bank

Net NPA in
FY2014
2.10
3.74
1.06
1.57
1.47

2.57
2.85
1.52
2.48
2.01

In the above table we see that Bank of Baroda had the least NPA level among the top five
Public Sector Banks in FY2013 & FY2014, which justifies the claim of the bank being leader
in NPA management in Indian Public Banking Sector.