With poor recovery of loans, nonperforming assets (NPAs) in Odisha is rising alarmingly, for which bankers are concerned. Now, the NPA stands at more than Rs 13,645 crore, which is constantly on the increase.

While the NPA as on March 31, 2021 was Rs 11,339.37 crore, it has risen to Rs 13,645.17 crore, which is 7.20per cent of the total credit facility extended to people. This is at much higher side and alarming, said a senior member of the State-Level Bankers Committee (SLBC).

While the banks have provided total advance of Rs 1,89,404.28 crore, the NPA is Rs 13,645.17 crore. Each quarter, there is rise in NPA; and due to absence of stimulant recovery measures, the hike has been accelerated.The Pradhan Mantri EMPLOYMENT Guarantee Programme (PMEGP) has turned out to be having the highest NPA of 21.17per cent. The Agriculture-notes-for-state-psc-exams”>Agriculture term loan sector has also become a concern for bankers as the NPA level is as high as 11.10per cent.

The is harping on more and more advances to be extended to the Self-Help Groups (SHGs), but cases of NPA are coming to the fore. By 31 August 2021, credit of Rs 1,321 crore has been extended to SHGs and more than 8per cent of it has turned out to be NPA.

The NPA issue was raised in a recently-held SLBC) meeting, in which major bankers sought the State administrations cooperation to arrest the NPA rise.

The SLBC advised the banks to stimulate the recovery measures to curtail the growing NPAs and the State Government was requested to extend support in this regard. While the district administrations support was also sought in this regard, it was felt that proper monitoring and handholding support is also required to restrict fresh slippages.

The banks were advised to increase advance portfolio by extending more priority sector credit in the State. In the programmes like PMEGP, MULM, NRLM and SHG, the NPA is high and on rise owing to non-repayment of loans, mounting overdue.

While NPA is on rise, banks require support from District Magistrates for attachment of property and quick enforcement of the SARFAESI Act, it was felt.

More than 630 applications for such attachments are pending with several district administrations across State, it was pointed out.