The total non-performing assets (NPAs) as a percentage of credit disbursed under the Pradhan Mantri MUDRA Yojana (PMMY)as of June, 2023 stood at 2.68 per cent, according to the data shared by Bhagwat Karad, Minister of State in the finance ministry in the Rajya Sabha on December 19. As of March 31, 2023, the NPA level stood at 2.62 per cent, down from 3.17 per cent as of March 2022. NPAs are advances or loans that are overdue for more than 90 days.

“However, steps taken by PSBs (public sector banks) for recovery of NPA under PMMY include constant follow up and increased frequency of customer connect; settlement through Lok Adalats, service of legal notices and initiation of legal action in the form of civil suits, etc.; and restructuring of eligible accounts and One Time Settlement (OTS),” said Karad.

As of December 15, 2023, 3.72 crore Mudra loans involving Rs 2.95 lakh crore were sanctioned of which Rs 2.88 lakh crore loans were disbursed, as per data from the Mudra portal. In FY23, 6.23 crore loans involving Rs 4.56 lakh crore were sanctioned of which Rs 4.50 lakh crore were disbursed, higher than Rs 3.31 lakh crore loans disbursed in FY22.

Overall, the gross NPAs 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 in July this year, FE Aspire had reported.

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.

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