Food manufacturing companies account for the maximum non performing assets (NPAs) as a proportion of total exposure to that sector by financial institutions (FIs).
Four FIs _ the Industrial Development Bank of India (IDBI), IFCI, ICICI and the Industrial Investment Bank of India _ had an exposure of Rs 3,531.5 crore to the food manufacturing sector with NPAs estimated at Rs 1,252.1 crore or 35.45 per cent of exposure as on March 31, 2001.
Of the 15 sectors for which data is available, the food manufacturing sector was fourth on the list accounting for 6.61 per cent of the cumulative NPAs of the four FIs. With an exposure of Rs 1,58,609 crore, NPAs have run to an estimated Rs 18,937 crore or 11.94 per cent of the advances, as on fiscal ended March 2001.
The drugs and pharmaceuticals sector was the second on the list. As on March 31 2001, 32.7 per cent or Rs 394 crore of the Rs 1,204.9 crore exposure of Industrial Development Bank of India and IFCI Ltd have been classified as NPAs.
The metal products sector where 31.92 per cent amounting to Rs 914.3 crore of the exposure of the four FIs which is worth Rs 2,863.9 crore has been classified as NPAs. This sector accounts for 4.83 per cent of the total NPAs of the four FIs which are estimated at Rs 18,937 crore at the end of March 2001.
As a percentage of total NPAs, the textiles sector, including cotton textiles and manmade fibres, accounted for over 20.21 per cent or Rs 3,827.6 crore the NPAs.
Iron & steel companies with NPAs to the tune of Rs 1,983.9 crore and with a share of 10.47 per cent of the bad loans is the second on the list followed by chemicals at Rs 1,253 crore.
The net NPAs of the four FIs is estimated at Rs 15,951.7 crore at the end of March 2001 compared to Rs 16,377.2 crore a year ago, representing an decrease of 2.6 per cent.
While IDBI's net NPA level has risen from Rs 7,674.7 crore in 1999-2000 to Rs 8,370.6 crore in 2000-01, IFCI and ICICI have reduced the level to Rs 2982 crore and Rs 3,937.1 crore, respectively. At the end of 1999-2000 ICICI's net NPA level was Rs 3,959 crore while IFCI had net NPAs amounting to Rs 4,102.5 crore.
During the last fiscal, Gross NPAs, however, rose 5.44 per cent to Rs 23,961.6 crore in 2000-01 compared to Rs 22,724.7 in 1999-2000.
IDBI (Rs 10,875 crore) and IFCI's (Rs 6,076.8 crore) gross NPAs rose 10.42 per cent and 2.57 per cent, respectively. IIBI's gross NPA also increased 9.46 per cent to Rs 1,021.5 crore.
On the other hand, ICICI managed to reduce its gross NPAs by 0.5 per cent to Rs 5,988 crore at the end of 2000-01.
