The share of gross non-performing assets (NPAs) in outstanding Mudra loans eased to 4.83% at the end of FY18 from 6.15% a year ago, according to data with Micro Units Development & Refinance Agency (Mudra). The value of outstanding Mudra loans as on March 31, 2018 was Rs 2.02 lakh crore, of which loans worth Rs 9,770 crore were classified as NPAs. On March 30, 2017, the value of outstanding Mudra loans stood at Rs 1.38 lakh crore, of which loans worth Rs 8,502 crore had turned bad, Mudra, a subsidiary of Small Industries Development Bank of India (Sidbi) said in response to a right to information (RTI) query. Loans worth Rs 5.72 lakh crore had been disbursed between the launch of the Pradhan Mantri Mudra Yojana (PMMY) in April 2015 and March 2018. In a bid to further push disbursements under the scheme, the finance ministry in May tied up with 40 entities, including Flipkart, Swiggy, Patanjali and Amul,\u00a0for extending loans to small entrepreneurs under the Mudra scheme. According to the ministry, 74% of Mudra scheme beneficiaries are women, while people from the Scheduled Castes\/ Scheduled Tribes (SC\/ST) and Other Backward Classes (OBC) categories have availed 36% of loans. The NPA figures for Mudra loans are much better than those for banks\u2019 micro, small and medium enterprises (MSME) portfolios. Delinquencies on account of MSMEs rose to a high 13.08% for public-sector banks\u2019 (PSBs) at the end of March 2018, compared with 12.56% in March, 2017, FE had reported on November 5. Not everyone is convinced by the relatively better asset quality profile of small loans which are disbursed under government schemes in a target-based fashion. For instance, former Reserve Bank of India (RBI) governor Raghuram Rajan warned against ambitious credit targets in a note to the parliamentary estimates committee on bank NPAs, adding that they could be the source of the next banking crisis. \u201cCredit targets are sometimes achieved by abandoning appropriate due diligence, creating the environment for future NPAs. Both Mudra loans as well as the Kisan Credit Card (KCC), while popular, have to be examined more closely for potential credit risk,\u201d he had observed. The value of loans outstanding under KCC stood at Rs 4.33 lakh crore on March 31, 2018, marginally lower than Rs 4.35 lakh crore a year ago, RBI said in response to an RTI query. The central bank said it did not have information on NPAs in the KCC category.