The Industrial development Bank of India's (IDBI) exposure to a single company has increased from 12.4 per cent in 1999-2000 to 15.3 per cent of its net worth in 2000-01. However, IDBI has not revealed the identity of the firm.
In the recent credit policy, the Reserve Bank of India has reduced its exposure ceiling for a single borrower group from 20 per cent to 15 per cent and for groups from 50 per cent to 40 per cent of the net worth.
The financial institution's exposure to a single borrower group was 23.6 per cent in fiscal 2001, up from 20.3 per cent in the previous year. The financial institution's expsoure to 10 largest borrowers was at 14.3 per cent, up from 14.1 per cent in 1999-2000, while the exposure to the top 10 business groups declined to 20.2 per cent in fiscal 2001 from 21.8 per cent.
IDBI's exposure to the iron and steel industry has been reduced from 14.3 per cent in 1999-2000 to 13.3 per cent this year. However, its assistance to electricity generation has increased to 10.9 per cent from 9.7 per cent in 1999-2000. Its assistance to some of the industries have shown a sharp increase -- refineries and oil exploration to 4.8 per cent from 3.4 per cent, chemical products from 2.9 per cent to 4 per cent, telecom services from 2.3 per cent to 3.8 per cent, metal products to 3.3 per cent from 1.8 per cent.
There has been a reduction in assistance in 2000-01 for some of the industries -- drugs and pharmaceuticals at 2.1 per cent (2.5 per cent), paper and paper products at 2.9 per cent (3.7 per cent).
Though the net non-performing assets (NPAs) of the institution rose to 14.8 per cent in 2001 from 13.4 per cent in the previous year, in sectors such as cotton textile, metal products, drugs and pharmaceuticals, man-made fibre, plastic and plastic goods, paper and paper products, electronics, non-ferrous metal and cement the NPAs have been bought down.
The NPAs in non-ferrous metal came down drastically to 2.8 per cent from 3.7 per cent in 1999-2000 and in paper and paper products to 3.5 per cent from 4.4 per cent. The NPAs, however, showed a sharp increase in electricity generation to 2.6 per cent from 0.2 per cent, while in iron and steel it went up marginally to 9.9 per cent (9.7 per cent).
