According to the latest report of the SLBC, Gujarat, the increasing bad loans in priority sectors, like those extended to the MSMEs (micro, small and medium enterprises, has contributed to the jump in the overall NPAs of the banks. With a 15 per cent jump in the non-performing assets (NPAs) in the last financial year (2017-18), the quantum of bad loans in both private and public sector banks of Gujarat has ballooned to a phenomenal Rs 35,220 crore. According to the latest report of the State Level Banker’s Committee (SLBC), Gujarat, which was released here on Thursday evening in the presence of Chief Minister Vijay Rupani, the increasing bad loans in priority sectors, like those extended to the MSMEs (micro, small and medium enterprises , has contributed to the jump in the overall NPAs of the banks. This is the second time during the 2017-18 fiscal year when the NPAs of the banks in the state have crossed the Rs 35000-crore mark. By the end of September 2017, the NPAs in Gujarat stood at Rs 35,342 crore. However by the end of March 2018, the gross NPAs of the banks in Gujarat stood a shade lower at Rs 35,220 crore, which is 6.53 per cent of the total loans extended by the banks. In comparison, the NPAs at the end of March 2014 stood at Rs 15,171 crore, which was just 4.43 per cent of the advances. The NPAs in the MSME sector stood at Rs 2,018 crore in March 2014. But it has jumped three-fold to Rs 6,726 crore by March 2018. However, banks have continued to lend to this sector. A total of Rs 50,521 crore was loaned to the MSMEs during 2017-18 — 179% of the target fixed for all banks under the annual credit plan (ACP) for priority sectors.
In the ACP for 2018-19, a target for disbursing an additional Rs 39,080 crore to the MSME sector has been fixed for banks in the state. If the performance of individual banks is taken into account, then for the 2017-18 fiscal year, Allahabad Bank had the highest percentage of gross NPA — Rs 1987 crore, 34.58 per cent of its total advances of Rs 5,746 crore — followed by Dhanlaxmi Bank (33.83 per cent), Indian Overseas Bank (31.56 per cent) and UCO Bank (21.29 per cent).
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