The government on Tuesday said 2.86 per cent of Rs 6.04 lakh crore worth of loans sanctioned under the Pradhan Mantri Mudra Yojana (PMMY) have turned into non performing assets (NPAs).
“Scheduled Commercial Banks (SCBs) and Regional Rural Banks (RRBs) have reported that as of March 2019, against a total amount of Rs 6.04 lakh crore disbursed by them under PMMY since inception of the scheme, an amount of Rs 17,251.52 crore had turned into non-performing assets (NPAs), which is 2.86 per cent of the total disbursed amount,” Minister of State for Finance Anurag Thakur said in a written reply to a question in the Rajya Sabha.
Even as NPAs continue to rise under Mudra, public sector banks continued with their loan disbursal programmes. Public sector banks disbursed a record Rs 4.91 lakh crore of loans during the festive month of October and November, the Finance Ministry said in a separate statement Tuesday. In order to boost credit availability in the economy, Finance Minister Nirmala Sitharaman had, in September, asked banks to reach out to customers and hold special credit disbursal camps while keeping in mind prudential norms. Under her direction, outreach camps or loan melas were conducted across 374 districts across the country during October 2019. During October, banks disbursed Rs 2.52 lakh crore while Rs 2.39 lakh crore in November.
“Total support sanctioned by PSBs in the form of credit to (including co-origination and on-lending) and pool buyouts from NBFCs since the IL&FS default in September 2018 till November 2019 has risen to Rs 4.23 lakh crore, including pool-buyouts of Rs 1.24 lakh crore. PSBs being adequately capitalised and record recovery underway, have sufficient liquidity to support credit growth,” the Ministry said.
Regarding Mudra loans, Reserve Bank of India Deputy Governor MK Jain last Tuesday warned about the growing stress and asked banks to monitor such loans closely as unsustainable credit growth in the sector can risk the system. “Mudra loans are a case in point. While such a massive push would have lifted many beneficiaries out of poverty, there has been some concerns at the growing level of non-performing assets among these borrowers,” Jain had said.
Prime Minister Narendra Modi launched the PMMY on April 8, 2015, for providing collateral free loans of up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises with a view to generating employment, and providing access to easy finance to small enterprises.
Thakur said any complaint received in respect of implementation of the PMMY, including turning down of loan applications, delay in turn-around time and lenders’ insisting on collateral/guarantor on certain occasions, are redressed in coordination with the respective banks.