Mudra Loan NPAs See Decline in Fiscal 2023-24: Finance Minister Sitharaman

Finance Minister Nirmala Sitharaman revealed a decline in non-performing assets (NPAs) associated with Mudra loans for public sector banks, dropping to 3.4% in fiscal year 2023-24. The decline marks an improvement from previous years. NPAs are critical indicators of banking sector health, reflecting the risk of defaults and financial instability.

Non-performing assets (NPAs) associated with the Mudra loan category in public sector banks have decreased to 3.4% for the 2023-24 fiscal year, Finance Minister Nirmala Sitharaman announced on Monday.

This represents a significant improvement from 4.77% in 2020-21, 4.89% in 2019-20, and 3.76% in 2018-19, as the Minister disclosed during the Lok Sabha Question Hour. According to Sitharaman, questions about NPAs linked to Mudra loans highlighted a downward trend over the past few years.

Sitharaman also reported that NPAs in private sector commercial banks fell to 0.95% in 2023-24 from a peak of 1.77% in 2020-21 and 0.67% in 2018-19. She underscored that recovery harassment is monitored closely, and incidents are promptly addressed.

(With inputs from agencies.)