Finance Minister Nirmala Sitharaman reported that non-performing assets (NPAs) on Mudra loans have fallen to 3.4% in FY 2023-24, down from previous highs of 4.77% in FY 2020-21 and 4.89% in FY 2019-20. Private sector banks saw NPAs decrease to 0.95%, while regional rural banks’ NPAs dropped to 2.47%. The Mudra loan scheme, aimed at supporting small businesses, shows improving loan health. This positive trend may benefit public sector banks and financial institutions with exposure to Mudra loans, potentially improving their stock performance.
Mudra Loan NPAs Decline to 3.4% in FY 2023-24
