"Mudra NPAs moderate in FY22, though still above pre-Covid levels"

Credit and Finance for MSMEs: Non-performing assets (NPAs) for credit disbursed by banks and other lending institutions under the Pradhan Mantri Mudra Yojana (PMMY) have slightly moderated in the financial year 2021-22, according to the government data. Indicating relief from credit schemes such as ECLGS by the government, NPAs as a cumulative percentage of total Mudra loans disbursed in FY22 decreased to 3.17 percent from 3.61 percent in FY21 though still above 2.53 percent in FY20.

The provisional data as of March 31, 2022, shared by Minister of State in the Ministry of Finance Bhagwat Karad in a written reply to a question in Rajya Sabha on Tuesday showed that the share of bad loans in credit disbursed under PMMY by the public sector banks was highest at 4.74 percent vis-a-vis 1.92 percent share for small finance banks, 1.14 percent for private banks, 1.01 percent for NBFC-microfinance institutions (MFIs), 0.67 percent for MFIs, and 0.07 percent for NBFCs.

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