Nearly 9 per cent of the education loans extended by public sector banks (PSBs) were categorised as non-performing assets in the last financial year, according to the government.
Nearly 9 per cent of the education loans extended by public sector banks (PSBs) were categorised as non-performing assets in the last financial year, according to the government. “As per information provided by Indian Banks’ Association (IBA), NPAs of PSBs increased from 7.29 per cent as on March 31, 2016 to 8.97 per cent as on March 31, 2018,” Minister of State for Finance Shiv Pratap Shukla said in a written reply to Lok Sabha.
He was replying to a question whether non-performing assets (NPAs) in education sector rose to 9 per cent during the two years period (2016-18).
Among the NPAs of PSBs under education category, the highest 21.28 per cent originated from nursing courses followed by engineering (9.76 per cent), other professions (9.49 per cent), medical profession (6.06 per cent) and MBA (5.59 per cent).
As at March 31, 2015, education sector bad loans stood at 5.7 per cent, the minister said citing IBA data.
The banks received repayment of education loans worth Rs 13,766.82 crore in 2017-18; Rs 11,548.87 crore in 2016-17; Rs 9,124.95 crore in 2015-16 and Rs 8,537 crore in 2014-15, Shukla said in response to the repayment position since 2014-15.
In a separate question about loans to micro, small and medium enterprises (MSMEs), he said more than Rs 9.06 crore was disbursed during 2017-18 across all states and union territories.
In 2016-17, the MSME sector got loans of more than Rs 7.89 lakh crore from banks, Rs 8.77 lakh crore in 2015-16 and Rs 7.76 lakh crore in 2014-15.
The minister said government and the Reserve Bank have taken several steps to ensure access of credit to MSMEs.
He also informed the House that the online lending portal with a majority ownership of 6 PSBs and financial institutions, their associate companies have been launched to provide loans of up to Rs 1 crore in 59 minutes.