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NPAs under PM Modi's Mudra scheme jumped 126% in FY19, shows RTI

The NPAs of loans issued under PM Modi's Mudra scheme leapt Rs 9,204.14 crore in FY 19 from Rs 7,277.31 crore in March 2018 to Rs 16,481.45 crore in March 2019.

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NPAs under PM Modi's Mudra scheme jumped 126% in FY19, shows RTI
The Non-Performing Assets (NPAs) under Prime Minister Narendra Modi's flagship scheme Pradhan Mantri Mudra Yojana (PMMY) saw a jump of 126% in just one year.

The Non-Performing Assets (NPAs) under Prime Minister Narendra Modi's flagship scheme Pradhan Mantri Mudra Yojana (PMMY) saw a jump of 126% in just one year. The NPAs of loans issued under the programme leapt Rs 9,204.14 crore in FY 19 from Rs 7,277.31 crore in March 2018 to Rs 16,481.45 crore in March 2019. This information was obtained as a response to an RTI filed by The Wire.

A total of 30.57 lakh accounts have been declared as NPAs under the Mudra scheme. Even though the value of NPAs is not very high as compared to the total loan value granted under the scheme, it is nevertheless increasing constantly.

More data from the RTI reveals that the loans to the tune of Rs 3.11 lakh crore in total were granted between April 1, 2018, and March 31, 2019, which means that the value of NPAs is 2.89% of the total value of loans.

Also Read: Modi govt scores a hat-trick; achieves Mudra loan target of Rs 3-lakh crore in FY19

Meanwhile, according to the official government website, the total amount of sanctioned loans increased 26.82% from Rs 2.53 lakh crore to Rs. 3.21 lakh crore in FY 19. The loan disbursal increased 26.53% from Rs 2.26 lakh crore to Rs 3.11 lakh crore in the same period. The total number of loans also saw a 24.39% jump from 4.8 crore on April 1, 2018, to 5.9 crore on March 31, 2019.

As per a report in IANS published on January 13, the Reserve Bank of India (RBI) had cautioned the Finance Ministry that Mudra scheme might become a major contributor to NPAs.

Under the RBI norms, an account is classified as a Non-Performing Asset (NPA) if it is not serviced for 90 days.

Also Read: NPA under PM Modi's Mudra Yojana spiked 53% in current fiscal: report

"In case of national banks, this deadline is 90 days, while the deadline is 120 days for NBFCs and MFIs. These rules apply to all types of loans, Mudra or otherwise," Harshit Agrawal, assistant manager of Mudra Ltd told the news website.

While the RTI response did give details concerning the total NPA amount, it did not reveal any information about the NPA account-holders such as their names, the total borrowed sum, interest rates etc. Mudra Ltd said that it does not have the required information regarding the same.

Also Read:Modi govt sanctioned Mudra loans worth Rs 18,000 cr in last 8 days of FY19: Report

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