Mudra NPAs: The government on Tuesday disclosed the total non-performing assets (NPAs) as a percentage of credit disbursed under the Pradhan Mantri MUDRA Yojana (PMMY) as of March 31, 2023, stood at 2.62 per cent (provisional), according to the official data.
Launched in 2015, the scheme refinances last-mile financiers who are in the business of lending to micro and small businesses in manufacturing, trading and services activities as well as agri-allied activities. The scheme enables credit at three different growth stages — Shishu, Kishor, and Tarun with financial limits up to Rs 50,000; Rs 50,00 to Rs 5 lakh; and Rs 5 lakh to Rs 10 lakh respectively.
According to the data shared by the finance ministry in a written reply to a question in the Rajya Sabha, 3.49 per cent of credit disbursed under Kishor category followed by 2.54 per cent of credit disbursed under Tarun category and 1.48 per cent of credit under Shishu category turned NPAs as of March 31, 2023. NPAs are advances or loans that are overdue for more than 90 days.
In FY23, Rs 4.56 lakh crore was sanctioned under 6.2 crore Mudra loans to MSEs while in FY22, Rs 3.39 lakh crore was sanctioned under 5.3 crore loans. In FY21, Rs 3.21 lakh crore was sanctioned under 5 crore loans while pre-Covid, during FY20, Rs 3.37 lakh crore was sanctioned under 6.2 crore loans.
Out of the sanctioned loan amount in every year, Rs 4.50 lakh crore loans were disbursed in FY23, Rs 3.31 lakh crore loans disbursed in FY22, Rs 3.11 lakh crore loans in FY21, Rs 3.29 lakh crore loans in FY20.
Importantly, the share of private banks and small finance banks (SFBs) in Mudra loans sanctioned was above the share of public sector banks (PSBs) and regional rural banks (RRBs). According to the data shared by the minister of state in the finance ministry Bhagwat Karad in the Lok Sabha on March 13 in a written reply to a question, private banks and SFBs had a combined share of 44.5 per cent with Rs 1.56 lakh crore loans sanctioned to MSEs.
In comparison, PSBs and RRBs had 42.6 per cent combined share amounting to Rs 1.49 lakh crore out of the total loans sanctioned worth Rs 3.51 lakh crore as of February 28 in the current financial year.
Meanwhile, the gross non-performing assets (GNPAs) in MSME loans by scheduled commercial banks (SCBs) had dropped by 14.3 per cent to Rs 1.31 lakh crore for FY23 from Rs 1.54 lakh crore during FY22, according to the data shared by Bhanu Pratap Singh Verma, Minister of State in the MSME Ministry in a written reply to a question in the Rajya Sabha recently.
GNPAs during FY23 were the lowest in the past five years, peaking at Rs 1.83 lakh crore in FY20 from Rs 1.63 lakh crore in FY19 and declining to Rs 1.82 lakh crore in FY21 before shrinking to Rs 1.31 lakh crore in the previous fiscal.