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

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Q: 64 (CAPF/2020)

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:

question_subject: 

Economics

question_exam: 

CAPF

stats: 

0,38,69,28,38,3,38

keywords: 

{'sectors': [0, 0, 1, 1], 'industrial sector': [0, 1, 0, 2], 'asset quality': [0, 0, 0, 1], 'infrastructure sector': [0, 0, 0, 1], 'commercial banks': [0, 0, 1, 1], 'information technology sector': [0, 0, 0, 1], 'assets': [0, 1, 1, 9], 'allied sector': [0, 0, 0, 1], 'agriculture': [5, 1, 0, 6], 'deterioration': [0, 0, 1, 2]}

In recent years, the deterioration of asset quality of commercial banks is largely attributed to Non-Performing Assets (NPAs). NPAs are loans or advances that have not been repaid for a certain period of time and are considered to have a higher risk of default.

The correct answer to the question is option 2, which states that the industrial sector and the infrastructure sector contribute to the deterioration of asset quality.

1. Agriculture and allied sector: This option is incorrect as it suggests that only the agriculture sector is responsible for the deterioration of asset quality. However, the question specifically asks for sectors that have contributed to the deterioration in recent years, and the agriculture sector is not mentioned in the correct answer.

2. Industrial sector: This option is correct. The industrial sector includes manufacturing, mining, and construction. Economic slowdown, changes in government policies, and other factors have led to a rise in NPAs in this sector.

3. Infrastructure sector: This option is correct. The infrastructure sector includes projects related to transportation, energy, and water supply. Delayed projects, cost overruns, and inadequate funding have contributed to a rise in NPAs in this sector.

4. Information technology sector: This option is incorrect as it suggests that the information technology sector contributes to the deterioration