So far as industry-wise NPAs are concerned, here too, the steel sector is not the main defaulter. The two main culprits are the man-made fibre and textile industry, which together account for over Rs 1300 crore worth of gross NPAs. The two sectors account for around 11.5 per cent of ICICI's gross NPAs. Steel comes next with Rs 573 crore, followed (very surprisingly) by the electronics sector. Interestingly, as a percentage of gross NPAs, the steel industry's contribution has fallen marginally from 10.4 per cent (in March 1999) to 10 per cent in June 1999. In the same period, the textile sector's contribution has risen substantially from 9.2 per cent to 11.5 per cent.

The sticky loans to the plastics industry is understandable as the sector has been reeling under a domestic slowdown, falling exports and frequent hikes in input prices. Besides, lobbying by environmental groups have also resulted in a spate of bans across the world on a number of plastic products. Till early 1998, plastic manufacturers were able to buck the recessionary trend in the domestic economy and post a modest growth thanks to big export orders.

But with exports to Russia drying up coupled with the global recession and high production cost of Indian manufacturers, the tables turned. With a fall in demand, on the one hand, and rising input costs, on the other, the plastic producers face a losing battle.

The man-made fibre and textile sectors, too, have been fraught with problems. The former has been hit by a bumper cotton crop, excess capacities and the south-east Asian crisis. On the other hand, the faster depreciation of the Asian currencies vis-a-vis the Indian rupee and poor offtake in the domestic arena thanks to the economic recession have taken a heavy toll of the Indian textile producers.