Metals, textile and the electronics sectors accounted for the highest values of non-performing asset (NPA) properties in the financial year 2011-12, according to a study by NPAsource.com, a portal set up by consultancy firm Atishya Technologies Pvt Ltd.

Out of the total NPA properties valued at Rs. 6,376 crore in 2011-12, the metals sector had the highest amount of Rs 1,188 crore, accounting for 18.63% share of the total, followed by the textiles (Rs. 1,131 crore) and the electronics industry (Rs. 734 crore), Mr Devendra Jain, CMD,said here on Monday.

Other major NPA-affected sectors were agriculture (Rs 401 crore), chemicals (Rs 320 crore), food and beverages (Rs 303 crore), automobile (Rs 219 crore), infrastructure (Rs 185 crore), information technology (Rs 140 crore) and construction (Rs 138 crore).

Topping the NPA shares, are States like Tamil Nadu (Rs 1,019 crore), Gujarat (Rs 795 crore) and Maharashtra (Rs 740 crore). The other States are Chhattisgarh (Rs 726 crore), Uttar Pradesh (Rs 522 crore), Andhra Pradesh (Rs 467 crore), Punjab (Rs 382 crore), West Bengal (Rs 332 crore), Karnataka (Rs Rs 223 crore) and Orissa (Rs 134 crore).

Mr Jain said that the iron and steel segment accounts for the largest share of NPA properties within the metals sector.

Intense competition in domestic and global markets, high cost of borrowings and slowdown in economies across the world is going to impact further rise in NPAs in the coming year too. The Financial Stability Report of RBI, released in June, states that NPAs grew at 43.9% as at end March 2012, far outpacing credit growth of 16.3%, he added.

(This article was published on July 9, 2012)
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