Tamil Nadu, UP, Gujarat have highest NPAs in India: study

Tamil Nadu, Uttar Pradesh, Gujarat and Andhra Pradesh accounted for the highest value of non-performing asset (NPA) properties in 2011-12 according to a new study.

The study, conducted by NPAsource.com,  reveals that out of 6,359 units valued at Rs9,897 crore across India in 10 months of 2011-12 financial year, Tamil Nadu has the largest amount of NPA properties valued at Rs1,261 crore spread across 663 units.

Uttar Pradesh was second with 533 units with a value of Rs1,025 crore, followed by Gujarat with 349 properties worth Rs1,023 crore and Andhra Pradesh (AP) with 1,226 units valued at Rs1,004 crore.

According to Devendra Jain, chairman and managing director, of metals sector consulting firm Atishya Group, ''While Mumbai is known to be the biggest centre for disbursement of loans to corporates, our study has found that Tamil Nadu and Uttar Pradesh have the largest amount of NPA properties by value in the first 10 months of 2011-12. Maharashtra comes at number five in terms of NPA properties by value."

Total NPAs in India as of 31 March 31 2011, exceed Rs 90,000 crore according to Reserve Bank of India statistics, excluding those with co-operative banks, state finance bodies, financial institutions  and non-banking finance companies.

The distribution of NPAs in the system follows the 80:20 rule whereby 20 per cent of borrowers account for 80 per cent of the value of impaired assets.