The real estate sector has been the biggest recipient of bank loans among 'sensitive sectors' in the financial year 2002-2003.

Sensitive sectors, as defined by the Reserve Bank of India, are: real estate, commodities, and capital markets.

During the fiscal 2002-03, bank lending to the realty sector shot up by a record 45.5 per cent compared with 14.4 per cent growth in the previous fiscal.

About forty-six banks, which share 91 per cent of the banking business in the country, have advanced Rs 11,116 crore (Rs 111.16 billion) to the sector during 2002-03, compared with Rs 7,675 crore (Rs 76.75 billion) in the previous fiscal.

ICICI Bank has been the biggest lender, accounting for 46.3 per cent of the total rise. Its advances rocketed by 340 per cent to Rs 2,094 crore (Rs 20.94 billion) from Rs 476 crore (Rs 4.76 billion).

Bank of India stood second with a 42 per cent rise to Rs 2,490 crore (Rs 24.90 billion) from Rs 1,758 crore (Rs 17.58 billion).

The others in the top-five slot were: Oriental Bank of Commerce [up Rs 215 crore (Rs 2.15 billion) to Rs 958 crore (Rs 9.58 billion)], Union Bank of India [up Rs 204 crore (Rs 2.04 billion) to Rs 745 crore (Rs 7.45 billion)] and Vijaya Bank [up Rs 183 crore (Rs 1.83 billion) to Rs 363 crore (Rs 3.63 billion)].

While the banks were lending to the real estate sector heavily, they ignored the other two sensitive sectors: commodities and capital markets.

Overall, their lending to sensitive sectors grew by 22.2 per cent during the fiscal 2002-03. Advances to the commodities sector grew by just 5.4 per cent to Rs 7,274 crore (Rs 72.74 billion) from Rs 6,904 crore (Rs 69.04 billion), while those to the capital markets segment declined by 8.1 per cent to Rs 1,885 crore (Rs 18.85 billion) from Rs 2,050 crore (Rs 20.50 billion).