Mudra Loan NPAs Decline Significantly
Finance Minister Nirmala Sitharaman announced a substantial decrease in the non-performing assets (NPAs) linked to Mudra loans issued by public sector banks during the current financial year. In 2023-24, NPAs on these loans plummeted to 3.4%, a remarkable improvement compared to 4.77% in 2020-21, 4.89% in 2019-20, and 3.76% in 2018-19.
Private Sector Banks Witness Improvement
The positive trend extended to private sector commercial banks as well, where Mudra loan NPAs dipped to 0.95% in 2023-24, down from a peak of 1.77% in 2020-21 and 0.67% in 2018-19.
Sahara Deposits Investigation Underway
Responding to inquiries regarding depositors’ funds in the Sahara Group, Sitharaman revealed that the Serious Fraud Investigation Office (SFIO) is conducting a comprehensive investigation. This probe aims to uncover the reasons behind the reluctance of a significant number of investors to claim their investments in the company.
Supreme Court Oversight
The Finance Minister emphasized that all matters concerning the Sahara Group remain under the vigilant supervision of the Supreme Court. The government is steadfastly adhering to the court’s directives in this matter.
Unclaimed Refunds Raise Concerns
Sitharaman acknowledged the fact that only a small fraction of investors have come forward to claim refunds. The SFIO’s investigation is actively exploring the reasons behind this phenomenon and seeking to determine the whereabouts of the remaining investors.
Summary
Finance Minister Nirmala Sitharaman has announced a significant drop in non-performing assets (NPAs) on Mudra loans in 2023-24. This positive trend is observed in both public and private sector banks. Additionally, the SFIO is investigating the issue of unclaimed deposits in the Sahara Group, under the supervision of the Supreme Court.
Key Learnings
| Point | Description |
|---|---|
| NPAs on Mudra loans have decreased. | In 2023-24, NPAs on Mudra loans fell to 3.4% in public sector banks and 0.95% in private sector banks. |
| SFIO is investigating Sahara deposits. | The investigation aims to understand why many investors have not claimed their investments in the Sahara Group. |
| The government is following court orders. | All matters related to the Sahara Group are being monitored by the Supreme Court, and the government is acting accordingly. |
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