Haryana Bankers Committee to use MAP for reducing MSME, Agri NPAs

Chandigarh, June 6 (KNN) On the advice of the Reserve Bank of India (RBI), the State Level Bankers Committee (SLBC) of Haryana will chalk out a Monitorable Action Plan (MAP) to step up the recovery mechanism in a time-bound manner along with other corrective measures for bring down the NPA under agriculture, MSME and Mudra loans.

According to the SLBC, the unsustainable credit growth in the sector can risk the system. The MAP aims to strengthen forward and backward linkages across entire value chains anchored by industries, aggregators, franchisors and associations.

As per bankers’ data, as on March 31, NPAs of banks in Haryana under agriculture loans was Rs 5,769 crore, which is 9.24 per cent of the total agriculture advances outstanding. A year back (as on March 31, 2021), it was 8 per cent or Rs 4,548 crore of the total outstanding. 

As far as Mudra loan is concerned, out of the total outstanding of Rs 6,204 crore as on March, Rs 695.50 crore was NPA, which is 11.24 per cent of the total outstanding. The NPA of the public sector banks was over 18.63 per cent, followed by Sarv Haryana Gramin Bank (10.84 per cent) and private sector banks (3.55 per cent).

There is a little improvement in MSMEs recovery as NPA under MSMEs advances was Rs 496 crore (5 per cent) of the total collateral free loan outstanding at the end of last fiscal year. As on March 31, 2021, the NPA under MSMEs advances was 6 per cent or Rs 499 crore of the total loans sanctioned under the collateral free.  (KNN Bureau)