Hit by Covid-19 pandemic, textile NPAs rose to 16.9% in December

After witnessing a continuous improvement for eight quarters, the textile sector’s asset quality slipped as gross non-performing assets (NPAs) rose to 16.92 per cent in December 2020 from 15.92 per cent in September 2020, triggered by the Covid-induced lockdown, according to the credit bureau CRIF-SIDBI’s report.
 
According to the CRIF report, the total amount of credit availed by the sector as of December 2020 stood at Rs 1.62 trillion, which witnessed a Y-o-Y decline of nearly 20 per cent.
 
This is due to the suspension of manufacturing activities in the immediate aftermath of the lockdown in March 2020.