Blitz Bureau
NEW DELHI: The Non-Performing Assets (NPAs) of Public Sector Banks linked to Mudra loans for small and micro enterprises have come down to 3.4 per cent of total loans during the financial year ended March 31, 2024 from 4.89 per cent in 2019-20, Finance Minister Nirmala Sitharaman has informed Parliament. Sitharaman said that NPAs of private sector banks linked to Mudra loans declined to 0.95 per cent of total loans in 2023-24 from a peak of 1.77 per cent in 2020-21.
Similarly, the NPAs of Regional Rural Banks, Small Finance Banks and State Cooperative Banks associated with Mudra loans have also come down, reflecting an improvement in the asset quality.
Sitharaman further stated that as far as interest rates on Mudra loans are concerned Public Sector Banks offer rates between 9.15 per cent and 12.80 per cent while private sector banks charge between 6.96 per cent to 28 per cent.
“However, monitoring mechanisms are in place to ensure fair recovery processes and address any instances of harassment,” she added.
She pointed out that data on NPAs is collected every year to ensure that public and private sector banks follow up on their recovery processes diligently.
