Which of the following sectors contribute in recent years to the deterioration of asset quality of commercial banks by way of Non-Performing Assets?
- 1. Agriculture and allied sector
- 2. Industrial sector
- 3. Infrastructure sector
- 4. Information technology sector
Select the correct answer using the code given below:
[amp_mcq option1=”1 and 2 only” option2=”2 and 3 only” option3=”1 and 4 only” option4=”1, 2, 3 and 4″ correct=”option2″]
This question was previously asked in
UPSC CAPF – 2020
– Statement 2 (Industrial sector): The industrial sector, particularly manufacturing, has been a significant source of NPAs due to factors like economic slowdown, global competition, and project delays.
– Statement 3 (Infrastructure sector): Infrastructure projects involve huge investments, long gestation periods, and regulatory hurdles, making them highly susceptible to delays and cost overruns, which significantly contribute to NPAs in the banking sector.
– Statement 4 (Information technology sector): The IT sector in India is generally characterized by high growth, lower debt-to-equity ratios compared to traditional industries, and has not been a significant source of large-scale NPAs for commercial banks.