BHUBANESWAR: The non-performing assets (NPAs) of banks operating in Odisha stood at 6.22 per cent (pc) as on March 31 due to low repayment of loans advanced to agriculture and education sectors.
The total NPA of the banks by the end of March was Rs 11,339.37 crore against Rs 10,199.77 crore as on December 31, 2020. The rise in the NPA during the last quarter of 2020-21 financial year from 5.8 pc to 6.22 pc is not only much higher than the national average but also of serious concern.
The cumulative outstanding advances in the State in the last financial year was Rs 1.82 lakh crore.
The NPA rate in the State is the highest in case of agriculture term loans at 14.45 pc followed by 10.64 pc in short term crop loan.
The bad loans for overall agriculture sector are 9.99 pc. A loan or advance for which the principal or interest payment remains overdue for 90 days or more is classified as an NPA.
Next to agriculture sector that has contributed to the deteriorating asset quality of banks is education where NPA stands at 11.02 pc. The MSME and housing sectors have NPAs of 8.96 pc and 3.39 pc respectively.
The State Level Bankers’ Committee (SLBC) has raised concern over the alarming NPA rate at a time when asset quality of banks across the country is deteriorating.
Slowing economic growth due to the Covid-19 pandemic is stated to be the primary reason for NPAs to pile up at banks. Reduced income has stunted ability of the borrowers to repay loans, banking sources said.
For the Prime Minister’s Rozgar Yojana, self-help groups and National Urban Livelihood Mission, the NPA position is 21.84 pc, 8.08 pc and 6.15 pc respectively.
Similarly, NPA position of public sector banks, private sector banks, regional rural banks (RRBs) and co-operative banks stood at 10.29 pc, 1.75 pc, 27.62 pc and 6.39 pc respectively.
As the banks facing problems in recycling funds owing to non-repayment of loans, mounting overdues and rising NPA, the SLBC has requested the State government to direct different departments to assist the banks in their recovery measures to curtail the increasing non-performing assets.
Bad loans
14.45 pc NPA rate in agriculture term loan
11.02 pc education loan
10.64 pc in short term crop loan
8.96 pc MSME sector