36% of total bad loans from 6 key sectors: RBI

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36% of total bad loans from 6 key sectors: RBI
The Reserve Bank of India has said that out of total 4.1 per cent bad assets in the system about 36 per cent have been created by only six sectors of the economy i.e. infrastructure, metals, textiles, chemicals, engineering and mining, reported PTI.

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

According to the RBI annual report for FY14, the gross NPA's in the system grew to 4.1 per cent as compared to 3.4 per cent during the same period a year ago. Also, during the last year the contribution of mandatory priority sector loans to the overall bad assets have come down.

The gross non-performing assets ratio for the non-priority sector grew to 4 per cent as of March 2014 as compared to 3 per cent in the last fiscal, while the same for priority sector stood stable at 4.4 per cent, it said.

"The non-priority sector has contributed more in the deterioration of the loan asset quality of the banking sector in recent years," it said, adding that the contribution of PSL loans to the overall bad loans narrowed to 36 per cent as of FY'14 from 40 per cent in FY'13.

Read more about: bad loans, rb, npas
Story first published: Monday, August 25, 2014, 9:10 [IST]
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