ABN Amro NPAs hop near 3-fold in 2008-09

The net Non-Performing Asset  ratio of ABN Amro has gone up to 2.2 per cent of its assets suggesting that the foreign bank is just a shade better than the crisis ridden Citibank, the RBI data revealed. Royal Bank of Scotland which acquired global operations of ABN Amro Bank, is in advanced discussions with bidders for selling its retail and commercial banking businesses in markets, including that of India.

ABN Amro Bank’s net NPA ratio, according to RBI, increased from 0.85 per cent in 2007-08 to 2.20 per cent during 2008-09, one of the highest among the 30 foreign banks operating in the country. Although it did not respond to the queries on reasons for sharp deterioration in its performance, the RBI figures reveal contraction in deposits and advances, which is considered as an indicator of decreasing confidence of people in the bank.