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:

The correct answer is Option 2 (2 and 3 only). In the context of Indian banking, the "Twin Balance Sheet" problem primarily stems from the Industrial and Infrastructure sectors.

• Industrial and Infrastructure Sectors: These sectors account for the largest share of Non-Performing Assets (NPAs). Large-scale projects in steel, power, and mining faced massive cost overruns due to land acquisition delays, environmental clearance hurdles, and sluggish global demand, leading to defaults on high-value corporate loans.
• Agriculture: While agriculture does contribute to NPAs, its impact is relatively granular and often mitigated by government schemes or debt waivers. In the specific "recent years" context of systemic asset quality deterioration, the sheer volume of stressed assets is dominated by corporate/industrial exposure.
• Information Technology: This sector is asset-light, has low debt-equity ratios, and high cash reserves, making its contribution to NPAs negligible.

Therefore, the systemic crisis in asset quality is fundamentally driven by the Industrial and Infrastructure segments.