{"id":90504,"date":"2025-06-01T10:29:50","date_gmt":"2025-06-01T10:29:50","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=90504"},"modified":"2025-06-01T10:29:50","modified_gmt":"2025-06-01T10:29:50","slug":"which-of-the-following-sectors-contribute-in-recent-years-to-the-deter","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/","title":{"rendered":"Which of the following sectors contribute in recent years to the deter"},"content":{"rendered":"<p>Which of the following sectors contribute in recent years to the deterioration of asset quality of commercial banks by way of Non-Performing Assets?<\/p>\n<ul>\n<li>1. Agriculture and allied sector<\/li>\n<li>2. Industrial sector<\/li>\n<li>3. Infrastructure sector<\/li>\n<li>4. Information technology sector<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below:<\/p>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;2 and 3 only&#8221; option3=&#8221;1 and 4 only&#8221; option4=&#8221;1, 2, 3 and 4&#8243; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CAPF &#8211; 2020<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-capf-2020.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-capf-2020\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct option is B. The Industrial sector and Infrastructure sector have been major contributors to the deterioration of asset quality of commercial banks in recent years by way of Non-Performing Assets (NPAs).<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; Statement 1 (Agriculture and allied sector): The agriculture sector does contribute to NPAs, often due to factors like climate dependence and price volatility, but typically accounts for a smaller share of the overall systemic NPA problem compared to large corporate loans.<br \/>\n&#8211; 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.<br \/>\n&#8211; 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.<br \/>\n&#8211; 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.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nIndia&#8217;s banking sector faced a significant NPA crisis, particularly in the period leading up to and during the mid-2010s. This crisis was largely attributed to excessive lending during the previous boom period, especially to large corporate houses in the infrastructure and core industrial sectors, many of which subsequently faced financial difficulties. This phenomenon was often referred to as the &#8220;twin balance sheet problem&#8221; (stressed assets in banks and stressed balance sheets of corporates).<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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=&#8221;1 and 2 only&#8221; option2=&#8221;2 and 3 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Which of the following sectors contribute in recent years to the deter\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/#more-90504\">Detailed Solution<span class=\"screen-reader-text\">Which of the following sectors contribute in recent years to the deter<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1288,1120,1190],"class_list":["post-90504","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1288","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following sectors contribute in recent years to the deter<\/title>\n<meta name=\"description\" content=\"The correct option is B. The Industrial sector and Infrastructure sector have been major contributors to the deterioration of asset quality of commercial banks in recent years by way of Non-Performing Assets (NPAs). - Statement 1 (Agriculture and allied sector): The agriculture sector does contribute to NPAs, often due to factors like climate dependence and price volatility, but typically accounts for a smaller share of the overall systemic NPA problem compared to large corporate loans. - 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following sectors contribute in recent years to the deter\" \/>\n<meta property=\"og:description\" content=\"The correct option is B. The Industrial sector and Infrastructure sector have been major contributors to the deterioration of asset quality of commercial banks in recent years by way of Non-Performing Assets (NPAs). - Statement 1 (Agriculture and allied sector): The agriculture sector does contribute to NPAs, often due to factors like climate dependence and price volatility, but typically accounts for a smaller share of the overall systemic NPA problem compared to large corporate loans. - 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.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:29:50+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which of the following sectors contribute in recent years to the deter","description":"The correct option is B. The Industrial sector and Infrastructure sector have been major contributors to the deterioration of asset quality of commercial banks in recent years by way of Non-Performing Assets (NPAs). - Statement 1 (Agriculture and allied sector): The agriculture sector does contribute to NPAs, often due to factors like climate dependence and price volatility, but typically accounts for a smaller share of the overall systemic NPA problem compared to large corporate loans. - 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.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/","og_locale":"en_US","og_type":"article","og_title":"Which of the following sectors contribute in recent years to the deter","og_description":"The correct option is B. The Industrial sector and Infrastructure sector have been major contributors to the deterioration of asset quality of commercial banks in recent years by way of Non-Performing Assets (NPAs). - Statement 1 (Agriculture and allied sector): The agriculture sector does contribute to NPAs, often due to factors like climate dependence and price volatility, but typically accounts for a smaller share of the overall systemic NPA problem compared to large corporate loans. - 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.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:29:50+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/","name":"Which of the following sectors contribute in recent years to the deter","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:29:50+00:00","dateModified":"2025-06-01T10:29:50+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct option is B. The Industrial sector and Infrastructure sector have been major contributors to the deterioration of asset quality of commercial banks in recent years by way of Non-Performing Assets (NPAs). - Statement 1 (Agriculture and allied sector): The agriculture sector does contribute to NPAs, often due to factors like climate dependence and price volatility, but typically accounts for a smaller share of the overall systemic NPA problem compared to large corporate loans. - 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.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sectors-contribute-in-recent-years-to-the-deter\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CAPF","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-capf\/"},{"@type":"ListItem","position":3,"name":"Which of the following sectors contribute in recent years to the deter"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/90504","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=90504"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/90504\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=90504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=90504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=90504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}