Stock Market: Know 10 Pvt Banks with Low NPAs Amid Rally

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Bank Nifty: IDBI Bank Tops Chart with Lowest NPA

By S Jha

New Delhi, March 31: Financials have led the rally in the stock market in recent days. The bulls’ charge has largely been led by Kotak Mahindra Bank. The stock of Kotak Mahindra Bank is now trading at all-time high.

But it is IDBI Bank which has the lowest non-performing assets (NPAs). In one month, shares of IDBI Bank rose by almost 13 per cent.

SyockEdge in a report on top 10 private sector banks having lowest net NPAs as on December 31, 2024 listed IDBI bank at the top. IDBI Bank’s Net NPA stood at 0.18 per cent. This is the best score among the private banks.
“Non-performing asset is the classification for loans or advances whose interest and/or installment of principal remain overdue for more than 90 days,” said StockEdge in an explanatory note.

It also stated that “net non-performing asset (NNPA) is a better indicator than gross non- performing asset for the health of the bank since it shows the actual burden of the bank without taking into consideration the provisions made by the bank”.

Lower the ratio, the less risky the bank is in terms of the quality of its assets, added StockEdge. Karur Vyasya Bank closely follows IDBI bank with net NPA at 0.20 per cent. Shares of Karur Vyasya Bank have almost been flat in the stock market.

Among the large size private banks, Axis Bank takes the third slot with net NPA of 0.35. In one month, shares of Axis Bank have risen by almost nine per cent. The stock has been bullish in recent days on the bourses.

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Kotak Mahindra Bank takes the fourth slot in low net NPAs at 0.41 per cent. Tamil Mercantile Bank also has the net NPA of 0.41 per cent.

But shares of Kotak Mahindra Bank has shined the most on the street. In one month, the stock has gained more than 14 per cent.

ICICI Bank takes the sixth slot in the chart of the net NPAs. Its score os 0.45 per cent. Shares of ICICI Bank have also been bullish lately. The stock has gained almost 12 per cent in the last one month.

The gains in the private banks in the stock market powered the Bank Nifty to reclaim the pivotal 51000 level. Among the indices, Bank Nifty has been seen to be most strong in the recent days.

The HDFC bank, which has the maximum weightage on the Bank Nifty, has the net NPA of 0.46 per cent. The next three private banks on the chart are Federal Bank, Yes Bank, and IDFC First Bank.