MUMBAI, AUGUST 30: Man-made fibres and textiles have replaced chemicals and chemical products in the list of top industries which account for the maximum amount of net non-performing assets for ICICI Ltd as on June 30, 1999.Both the industries account for 11.5 per cent of the total net loan assets of Rs 5,707.3 crore. While in absolute terms, manmade fibres industries has defaulted to the tune of Rs 659.6 crore, sticky loans in textile industries are pegged at Rs 657.6 crore. Both the industries are closely followed by the iron and steel sector which accounts for 10 per cent of ICICI's NPAs.Among the top 10 industries that have helped ICICI accumulate the maximum net NPAs include manmade fibres, textiles (11.5 per cent) other industries (10.3 per cent), iron and steel (10 per cent), electronics (6.7 per cent) basic chemical products, plastics (6.5 per cent), food products (5.4 per cent), metal and metal products (5.3 per cent), drugs (4.3 per cent), cement (3.5 per cent), services (3 per cent), machinery and electrical equipment (2.6 per cent).In percentage terms, ICICI's share of bad debt on account of cement came down from 5.1 per cent to 3.6 per cent in March 1999. The reduction in other industries were to the tune of services: ( from 4.2 per cent to 2.6 per cent), manmade fibers (17.2 per cent to 13.1 per cent), textiles(10.9 per cent to 9.9 per cent) and electronics (7 per cent to 6.2 per cent).As on June 30, ICICI's net NPA in absolute terms has expanded from Rs 5,488.7 crore to Rs 5,727.3 crore. The institution has written off Rs 32.56 crore during April 1999-June 1999 against bad and doubtful debts. The company has enforced security in respect of most of these assets. As against this amount, the total amount due and claimed from the borrowers in the recovery proceedings amounted to Rs 354.58 crore for June 30.The institution has managed its NPAs in a two-track system. The first category of NPAs consists of borrowers with respect to whom ICICI has decided to recall loans and enforce its security. The company's policy is to recall a loan when the borrower has not demonstrated a likelihood of entering into a satisfactory restructuring of the loan or returning it to performing status.Till June 30 1999 there were 715 such borrowers in ICICI's portfolio and the aggregate book value of loans to them was Rs 1,467.09 crore, constituting 3.1 per cent of ICICI's total loans, debentures and leases.The second category of NPAs consists of borrowers that are unable to service their debt fully for a variety of reasons including industry and marketing problems, but are expected to return to performing status. As in June 1999 there were 688 borrowers in this category and the aggregate book value of loans to them was Rs 1,467.09 crore constituting 3.1 per cent of ICICI's total loans, debentures and leases.The net NPA ratio of the institution had moved up from 7.6 per cent to 7.8 per cent adding an amount of Rs 812 crore of NPA during 1998-99.
