Lok Sabha Question No. 1876 (UNSTARRED), answered on 2018-12-21
Subject: Turning of MUDRA Loans into NPAs
Ministry: FINANCE
Asked by: T.G. VENKATESH BABU

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## UN-STARRED QUESTION NO. 1876 TO BE ANSWERED ON FRIDAY, DECEMBER 21, 2018 AGRAHAYANA 30, 194(SAKA)

## Turning of MUDRA loans into NPAs

## QUESTION

1876: SHRI VENKATESH BABU T.G::

Will the Minister of FINANCE be pleased to state

- (a) whether a huge amount of loan distributed under MUDRA scheme has turned out to be Non-Performing Assets (NPAs);
- (b) if SO, the details of loans sanctioned under the three schemes of MUDRA during the last three years along with targetslactuallrecoveries made and the loans that became NPAs, year-wise;
- (c) whether the Government has takenlproposes to take steps for early recovery of loans under MUDRA scheme; and
- (d) if not; the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI SHIV PRATAP SHUKLA)

- (a) As reported by Public Sector Banks (PSBs), total Non-Performing Assets (NPAs) for loans extended under Pradhan Mantri Mudra Yojana (PMMY) during the last three years were Rs 596.72 Cr (2015-16) , Rs 3,790.35 Cr (2016-17) and Rs 7,277.31 Cr (2017-18) respectively. PMMY NPAs as on 31st March, 2018 for PSBs were 3.43% of the amount disbursed under the scheme
- (b)
- Details of loans sanctioned by Member Lending Institutions (MLIs) and target under PMMY are as under:

## Amount Rs in crore

| FY      | Overall   | Loan amount sanctioned   | Loan amount sanctioned   | Loan amount sanctioned   | Total     |
|---------|-----------|--------------------------|--------------------------|--------------------------|-----------|
|         | Target    | Shishu                   | Kishore                  | Tarun                    |           |
| 2015-16 | 122188    | 62894.96                 | 43052.55                 | 31501.76                 | 137449.27 |
| 2016-17 | 180000    | 85100.74                 | 53545.14                 | 41882.66                 | 180528.54 |
|         | 244000    | 106001.60                | 86732.16                 |                          | 253677.10 |

Of the above, loans sanctioned by PSBs are as under:

## Amount Rs in crore

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| FY      | Loan amount sanctioned   | Loan amount sanctioned   | Loan amount sanctioned   | Total    |
|---------|--------------------------|--------------------------|--------------------------|----------|
|         | Shishu                   | Kishore                  | Tarun                    |          |
| 2015-16 | 8662.87                  | 28185.82                 | 22825.59                 | 59674.28 |
| 2016-17 | 6058.58                  | 34649.68                 | 31245.4                  | 71953.66 |
| 2017-18 | 7212.39                  | 45300.42                 | 39979.88                 | 92492.69 |

PMMY loans extended by PSBs were standard loans in terms of repayment as on 31st, March 2018, except for NPA indicated above\_

- (c) & (d) PSBs follow recovery procedures as approved by Banks' Boards and in compliance of extant Reserve Bank of India (RBI) guidelines. Non-Performing accounts are periodically ronitored for recovery of overdue amount