BHUBANESWAR: Even as non-performing assets (NPAs) of commercial banks in the State have seen a marginal decline in 2017-18 compared to the previous fiscal, the high overdue debt position is a major cause of concern for the banking sector and State Government as well.
The gross NPA position of banks, which stood at 8.26 per cent as on March 31, 2015, zoomed to 11.50 per cent in 2016-17. However, the situation improved in the last financial year when the NPA position marginally decreased to 10.66 per cent, which was even lower than the national average of 11.2 per cent.
Of the total outstanding advance of Rs 1,32,674 crore to priority and non-priority sectors, the NPAs stood at Rs 14,146.84 crore. While the NPAs to the total outstanding in priority sector was 11.87 per cent, it was 8.99 per cent in the non-priority sector.
The total outstanding in the priority sector that covers agriculture, MSME, education and housing was Rs 77,126.48 crore of which credit worth Rs 9,154.67 crore has turned into bad loan, informed sources in the banking sector.In the non-priority sector, Rs 4,992.17 crore out of total advance of Rs 55,547.54 crore has become non-performing.
“The banks are facing problems to recycle funds due to non-repayment of loan, mounting overdue and rising NPAs. Banks and the State Government have to make joint efforts with specific strategy to improve the recovery performance for better recycling of funds,” the sources said.
Banks having higher percentage of NPAs than the State average include Punjab National Bank (44.66 per cent), Oriental Bank of Commerce (30.90 per cent), UCO Bank (22.94 per cent), Bank of Baroda (16.58 per cent), State Bank of India (14.97 per cent), Utkal Gramya Bank (26.68 per cent) and Odisha Gramya Bank (22.16 per cent).
While the gross NPAs of public sector banks were Rs 11,263.89 crore against total advance of Rs 79,198.87 crore, the NPAs of regional rural banks stood at Rs 1865.75 crore, which was 23.96 per cent of their total outstanding credit of Rs 7,785.35 crore.
The NPAs and overdue percentages are too high for advance made to projects under Prime Minister’s Rozgar Yojana, Prime Minister’s Employment Generation Programme, Swarna Jayanti Shahari Rozgar Yojana, Self Help Groups and Weaver Credit Card.