Reserve Bank deputy governor MK Jain on Tuesday warned bankers about the growing stress in Mudra loans, which has crossed more than Rs 3.21 lakh crore system-wide, and asked them to monitor such loans closely as unsustainable credit growth in the sector can risk the system.<\/p>\n\n\n\n
Prime Minister Narendra Modi had launched the Mudra scheme in April 2015 with much fanfare to offer speedier credit up to Rs 10 lakh to small businesses which are non-corporate, non-farm small\/micro enterprises and which normally do not get bank funds due to their poor and mostly no credit rating. These loans are extended by banks, NBFCs, RRBs, cooperative banks and small finance banks.<\/p>\n\n\n\n
\u201cMudra loans are a case in point. While such a massive push would have lifted many beneficiaries out of poverty, there has been some concerns at the growing level of non-performing assets among these borrowers,\u201d Jain told a Sidbi event on microfinance.
\nThe commercial-banker-turned central banker said banks need to focus on the repayment capacity at the appraisal stage itself and monitor loans through the life cycle of the account much more closely.<\/p>\n\n\n\n
The government had in July informed Parliament that total NPA in the Mudra scheme of over Rs 3.21 lakh crore has jumped to 2.68 per cent in FY19 from 2.52 per cent in FY18. Since inception of the scheme, over 19 crore loans have been extended under the scheme up to June 2019, the government had informed. Of the total 3.63 crore accounts are in defaulted as of March 2019.<\/p>\n\n\n\n
However, according to an RTI reply, the bad loans in the Mudra scheme soared a whopping 126 per cent in FY19 jumping by Rs 9,204.14 crore to Rs 16,481.45 crore in FY19 from Rs 7,277.31 crore in FY8.<\/p>\n","protected":false},"excerpt":{"rendered":"
Reserve Bank deputy governor MK Jain on Tuesday warned bankers about the growing stress in Mudra loans, which has crossed more than Rs 3.21 lakh crore system-wide, and asked them to monitor such loans closely as unsustainable credit growth in the sector can risk the system. Prime Minister Narendra Modi had launched the Mudra scheme […]<\/p>\n","protected":false},"author":1,"featured_media":75286,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-75285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/75285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=75285"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/75285\/revisions"}],"predecessor-version":[{"id":75287,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/75285\/revisions\/75287"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/75286"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=75285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=75285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=75285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}