The amount of Mudra loans that turned into Non-Performing Assets (NPAs) stood at Rs 7,277.31 crore in 2017-18, according to the Finance Ministry. In 2016-17, Rs 3,790.35 crore worth of NPAs was recorded. In one year, therefore, the amount almost doubled.
In 2017-18, the total amount of Mudra loans extended by Public Sector Banks rose by around 22 per cent from Rs 71953.66 crore in 2016-17 to Rs 92,492.69 crore, The Indian Express reported. Banks and microfinance institutions in the non-farm segment disburse Mudra loans for non-corporate borrowers for income-generating activities at 8-12 per cent interest rate. Besides banks, regional rural banks and micro-finance institutions (MFIs) extend Mudra loans.
As on March 31, 2018, the Mudra loan NPAs ratio of public sector banks was at 3.43 per cent. However, the overall loans in this category registered an NPA rate of 5.38 per cent.
In a reply to a question in Lok Sabha, Minister of State in Finance Ministry Shiv Pratap Shukla said, “As reported by Public Sector Banks (PSBs), total NPAs for loans extended under Pradhan Mantri Mudra Yojana (PMMY) during the last three years were Rs 596.72 Crore (2015-16), Rs 3,790.35 Crore (2016-17) and Rs 7,277.31 Crore (2017-18) respectively. PMMY NPAs as on March 31, 2018, for PSBs, was 3.43 per cent of the amount disbursed under the scheme.”
Quoting the report, Congress leader Ahmed Patel slammed the Bharatiya Janata Party (BJP) asking whether it was a “lollipop” or “scam”.
Will BJP please answer ? Is this a “lollipop” or a scam ? pic.twitter.com/ZZRuRSb9iS
— Ahmed Patel (@ahmedpatel) January 2, 2019
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