Ahmedabad: As a micro company fighting the Arrangement of Pandemic Covid-19, non-performing non-performing assets (NPA) or a bad loan circulating under the Pradhan Mantri Mudra Yojana increased by 48% in Gujarat.
According to the latest report by the State Level Banker Committee (SLBC), Gujarat, NPA for Mudra loans reached RS 872.25 Crore absolutely in the September 2021-22 quarter.
NPA rose from Rs 587.26 Crore in the quarter that matched 2020-21, the report stated.
During the September quarter of this year, the total expanded loan below the Pradhan Mantri Mudra Yojana (PMMY) reached Rs 9,300.5 Crore.
From April to November 2021, a loan worth Rs 5,172.56 Crore was extended under Pmmy in Gujarat which, Rs 3,083.34 Crore was disbursed between August and November.
According to bankers, non-performing assets rose in the Mudra loan as a micro company continued to fight the covid-19 earthquake.
“Because of the Covid-19 pandemic, a small company and a number of players in the informal sector face many disorders.
As a result, their loan payment capacity weakens and more NPAs are classified.” The situation, increased slightly in the September quarter of this year, because businesses throughout the spectrum began to head Normal, “said a well-placed source in SLBC.
In addition to micro companies, many small traders and vendors also qualify for mudra loans, and they are among the worst affected entities because of the locking of Covid-19, the word source said.” The increasing price of raw materials and increasing uncertainty affects cross-sectoral and size businesses.
“The impact will be steeper in smaller companies because they don’t have inner bags.
At the same time, classified as NPA makes things more difficult for small companies because making financial from other banks is also difficult,” said Pathik Patwari, Senior Vice President, Gujarat Chamber of Commerce and Industry (GCCI).