State-run banks accounted for the maximum share of NPAs among the banking entities. While there was an overall decline in the share of NPAs to total advances as well as total assets, reflecting the impact of the revised guidelines regarding prudential norms, in absolute terms, both gross and net-NPA were up.

According to the Reserve Bank of India's (RBI) report on Trend and Progress of Banking in India for 1999-2000, gross NPAs of state-run banks increased to Rs 53,294 crore in 1999-2000 from Rs 51,710 crore in 1998-99, net NPAs increased to Rs 26,188 crore from Rs 24,211 crore in 1998-99. As a result, the ratio of gross NPAs to gross advances of state-run banks declined to 14 per cent (15.9 per cent), net NPAs to net advances also showed a decline to 7.4 per cent (8.1 per cent). Gross NPAs to total assets declined to 6 per cent (6.7 per cent) and net NPAs to total assets also declined to 2.9 per cent (3.1 per cent).

During the period, NPAs of both the old and new private sector banks recorded a considerable decline, as percentage of total assets as well as advances reflecting the impact of increase in standard assets, went up to 91.5 per cent (89.2 per cent). Gross NPAs to gross advances of all private sector banks declined to 8.5 per cent (10.8 per cent) and net NPAs to net advances also showed a decline to 5.6 per cent (7.4 per cent). Gross NPAs to total assets declined to 3.6 per cent (4.5 per cent) and net NPAs to total assets declined to 2.3 per cent (2.8 per cent).

Foreign banks have also reported a fall in their NPA ratios, resulting from a decline in sub-standard assets. The share of sub-standard assets to total advances declined to 2.9 per cent (4 per cent). The gross NPAs to gross advances of foreign banks declined to 7 per cent (7.6 per cent) and net NPAs to net advances also showed a decline to 2.4 per cent (2.9 per cent). The RBI has of recent undertaken a number of initiatives to enhance the disclosure standards and transparency, in the operations ofthe banks. Steps have also been initiated to add transparency in the accounting standards which have a bearing on the overall robustness of the banking operations in an increasingly integrated global financial environment.