Idbi Steel Exposure At 14.3%

The Industrial Development Bank of India's (IDBI) exposure to the iron and steel industry is close to the 15 per cent limit set by Reserve Bank of India (RBI) at 14.3 per cent, as on the March 31, 2000, according to the balance sheet of the financial institution (FI) for fiscal 1999-2000. IDBI's outstandings to the sector at Rs 7,927.9 crore is higher than 13.2 per cent in the previous year at Rs 6,634.2 crore.

The RBI has asked banks and FIs to reduce their exposure in industry from 20 per cent to 15 per cent in phases. The institution's total non-performing assets (NPAs) increased to 1,332 in 1999-00 from 1,204 in the previous year.

Of the Rs 7,927.9 crore funded to the sector, loans amounting to Rs 687 crore has turned into NPAs. However, the aggregate NPAs in this sector has fallen to 9.7 per cent of the FI's total NPAs, which are down from 12.1 per cent (Rs 708.7 crore) over the previous year.

The institution's NPA is highest in the cotton and textile industry at 13.8 per cent, up from 11.1 per cent, while in absolute terms, it was at Rs 973.2 crore, up from Rs 652.3 crore in 1998-99.

IDBI's total exposure to this sector amounts to Rs 4,954.5 crore (9 per cent), up from Rs 4,629.5 crore (9.2 per cent).

Following iron and steel sector, the FI has highest exposure in electricity generation amounting to 5370.3 crore (9.7 per cent).

Meanwhile, the NPAs in the cement sector have declined during the year to Rs 163.6 crore or 2.3 per cent of the total NPAs, from Rs 248.5 crore (4.2 per cent) in the previous year.

During the year, the FI's sub-standard assets after provisioning dropped to Rs 4,054.9 crore (Rs 4,184.9 crore) and the doubtful assets increased to Rs 2,305.2 crore (Rs 3,619.8 crore). The provision made on substandard asset was up to Rs 429 crore (Rs 450 crore, while doubtful assets increased to Rs 1,745.4 crore (Rs 1,289.6 crore).

The net NPA to total assets ratio was up from 12 per cent to 13.4 per cent in 1999-2000.