New Delhi, Dec 30 (KNN) The economic slowdown has taken a maximum toll on five important sectors of the industries - infrastructure, iron and steel, textiles, aviation and mining. These industries have piled up high level of stressed advances contributing around 24 per cent of total advances of the scheduled commercial banks, according to an RBI report. 

“At system level, these five sectors together contribute around 24 percent of total advances of SCBs, and account for around 51 per cent of their total stressed advances,” according to the Financial Stability Report for December, 2014. 

The share of above mentioned five sectors in the loans portfolio of public sector banks is the highest around 55 per cent followed by old private sector banks, it said.

“Early detection and prompt corrective action in problem accounts, concerted efforts at recovery, improvements in corporate governance, accountability at all levels, a more supportive legal infrastructure, etc. could go a long way in addressing issues related to asset quality. These issues are being addressed through policy guidelines being framed by the Reserve Bank. “

Reserve Bank has already brought out a discussion paper on “Early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for Revitalising Distressed Assets in the Economy “. 

There are various factors affecting the asset quality of SCBs adversely, such as the current slowdown- global and domestic, persistent policy logjams, delayed clearances of various projects, aggressive expansion by corporate during the high growth phase, inadequate credit appraisal, it said. (KNN Bureau)