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Six sectors play NPA spoilsport

Mumbai, Aug. 24 (PTI): The Reserve Bank has said about 36 per cent of the overall 4.1 per cent bad assets in the system have been created by six sectors of the economy — infrastructure, metals, textiles, chemicals, engineering and mining.

However, these sectors have only 30 per cent of the credit share.

The central bank, in its annual report for 2013-14, said gross non-performing assets (NPA) in the system had grown to 4.1 per cent from 3.4 per cent in 2012-13.

It also said the contribution of mandatory priority sector loans to the overall bad assets had come down during the last fiscal.

Stating that the state-run banks are the chief sources of stress, the central bank said these six specifically identified sectors alone contributed 36 per cent to gross NPAs against their 30 per cent contribution to total advances.

The gross NPA ratio for the non-priority sector grew to 4 per cent as of March 2014 from 3 per cent in the year ago period, while the same for priority sector stood stable at 4.4 per cent, it said.

 
 
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