The Industrial Development Bank of India's (IDBI) asset base has shrunk by more than Rs 5,000 crore in fiscal 2002 -- from Rs 71,783.4 crore to Rs 66,642.6 crore.
The assets have shrunk for the second consecutive year. In fiscal 2000, the assets of the institution was at Rs 72,285.4 crore.
The reserves of IDBI have also fallen to Rs 6,001.4 crore from Rs 8,365 crore the previous year, following provisioning for stress assets drawing down from reserves.
More From This Section
IDBI had made an accelerated provisioning of Rs 2,500 crore for fiscal 2002. The institution has made a total provisioning of Rs 3,273 crore, which includes a normal provisioning of Rs 773 crore.
In a bid to restructure its assets, the IDBI board has fixed the total maximum exposure to a single company at Rs 500 crore or 75 per cent of net worth of the company or 40 per cent of the total loan amount whichever is least.
The total maximum exposure to a group would be Rs 2,000 crore or 75 per cent of the combined net worth of a group whichever is less.
The total exposure to an individual industry would be 10 per cent of the bank's industry portfolio or Rs 5,000 crore, whichever is less.
The credit exposure to the single largest borrower as a percentage of capital funds is at 12.46 per cent, while for the largest borrower group it is at 19.92 per cent as against the Reserve Bank of India-stipulated norm of 15 and 40 per cent, respectively.
The non-performing assets (NPAs) of the steel sector as per the industry wide classification as a percentage in IDBI have increased from 9.9 per cent as on fiscal 2001 to 15.5 per cent as on fiscal 2002.
The iron and steel sector constitutes the largest chunk of NPAs. The NPAs in the sector have risen to Rs 838.5 crore as on March 31, 2002, from Rs 720.9 crore the previous year.
The other sectors where the NPAs have shown a rise include cotton textiles at 13.7 per cent in fiscal 2002 compared with 13.3 per cent the year before, food at 7.7 per cent (8.9 per cent), plastic and plastic goods 5 per cent (4 per cent), other textiles 3.2 per cent (2.5 per cent) and services 2.1 per cent (0.9 per cent).
However, the sectors which have seen a reduction in the NPAs include chemicals, drugs and pharmaceuticals, man-made fibres and electrical machinery.
The iron and steel sector has also recorded the highest assistance as a part of the industry-wide assistance of Rs 7955.8 crore which amounted to 15.2 per cent in fiscal 2002.
This is against an assistance of Rs 7,468.5 crore or 13.3 per cent in fiscal 2001. The other sectors where the assistance has increased includes electricity generation 13.6 per cent (10.9 per cent), telecom services 4.5 per cent (3.8 per cent), petrochemicals 4.4 per cent (2 per cent).