Cons Of Welfare Schemes: Borrowers Bunk Off, Unpaid Loans Become NPAs In MP

BHOPAL (Madhya Pradesh): The non performing assets (NPA), which followed non-payment of loans disbursed under government-run welfare schemes are mounting up in the state. This was revealed at the state-level bankers' committee meeting held here on Thursday.

Despite numerous efforts made by banks, the scheme beneficiaries who took loans are not paying back in instalments. Worse, banks are not able to settle the loan payment through One Time Settlement Scheme because of one of the clauses in MoU signed between state government and banks restricts them to do so, sources said.

The same issue was discussed at bankers' committee meetings earlier too wherein banks had requested government to take steps for recovery of banks dues.

NPA under govt schemes

Most loans disbursed under Mukhya Mantri Swavlamban Yojana and Mukhyamantri Yuva Udyami Yojana have become NPAs. The NPAs under the two schemes reached 26.9% in past financial year. Loans worth Rs 520 crore remain to be recovered from borrowers. The unpaid loan under MUDRA scheme is Rs 2,776 crore. Loans worth Rs 122 crore given to self help groups have become NPA in the state. The Prime Minister Employment Generation Programme (PMEGP) has also caused loss to banks, which have to recover Rs 172 crore from borrowers.

Sector-wise NPA

Banks have incurred huge loss after loans they issued in agriculture sector. Loans worth Rs 19,764 crore given in the sector have become NPAs.

This loss is Rs 61,74 crore in MSME sector, it is Rs 2006 crore in housing sector. In priority sector, the banks incurred loss of Rs 29,708 crore. In non-priority sector, the loss stands at Rs 5931 crore. In education sector, the loss is Rs 147 crore.

Banks' loss in 2023-2024

Loans worth Rs 21,874 crore disbursed by public sector banks have become NPAs. The NPAs of cooperative banks are worth Rs 7,363 crore. They are Rs 4,421 crore in private sector banks. The NPAs in regional rural banks stand at Rs 1,370 crore. They are worth Rs 609 crore in small sector finance banks.