Mudra loan NPAs swell by 48% in Gujarat

As micro-enterprises battle the aftershocks of the Covid-19 pandemic, gross non-performing assets (NPAs) or bad loans outstanding under the Pradhan Mantri Mudra Yojana increased 48% in Gujarat.

According to the latest report by the state-level bankers committee (SLBC), Gujarat, NPAs for Mudra loans stood at Rs 872.25 crore in absolute terms in the September quarter of 2021-22. NPAs went up from Rs 587.26 crore in the corresponding quarter of 2020-21, the report states.

During the September quarter of this year, the total outstanding of loans extended under Pradhan Mantri Mudra Yojana (PMMY) stood at Rs 9,300.5 crore.
From April to November 2021, loans worth Rs 5,172.56 crore were extended under PMMY in Gujarat of which, Rs 3,083.34 crore was disbursed between August and November.
According to bankers, non-performing assets went up in Mudra loans as micro enterprises continued to battle aftershocks of Covid-19.