Mumbai, Dec 20 (KNN) Indicating strain in the MSME sector, it is reported that about 18 per cent loans availed by MSMEs in Mumbai are now non-performing assets (NPAs) as of September 2022, reported Indian Express.

NPAs in the state have been Rs 47,901 crore, or 19 per cent of total loan outstanding as of September 2021.

As per a data compiled by the State Level Bankers Committee (SLBC) of Maharashtra, out of Rs 162,874 crore loans taken by MSMEs in Mumbai (including suburban region), Rs 22,579 crore involving 46,978 accounts have turned into NPAs.

Of this, MSME NPAs from Mumbai alone have amounted to Rs 19,324 crore, or 18 per cent of loan outstanding of Rs 109,927 crore, and Mumbai suburban Rs 3,255 crore (six per cent) of Rs 52,947 crore outstanding.

Out of total outstanding of Rs 43,988 crore, Rs 3,606 crore have become NPAs in Pune.

However, the RBI’s Financial Stability Report says the aggregate NPA ratio in the MSME sector has moderated from 11.3 per cent in September 2021 to 9.3 per cent in March 2022.

When the principal or interest payment remains overdue for 90 days that is when a loan becomes NPA.

Overall in the state of Maharashtra, out of a total MSME loans of Rs 314,914 crore, Rs 34,488 crore, or 11 per cent, have become NPAs, according to SLBC data.

Public sector banks accounted for Rs 30,938.6 crore MSME loans and Rs 2,986.9 crore banks.  (KNN Bureau)