Banks' NPA at 11.38% in Odisha

The non-performing assets (NPA) of banks in Odisha have zoomed to 11.38 per cent in 2015-16 compared to 8.26 per cent recorded in 2014-15 with high slippages in the agriculture, MSME ( micro small and medium enterprises) and education loans.

Out of the total outstanding advances of Rs 1,04,861.93 crore to different sectors, the NPA stood at Rs 11,934.98 crores for the last fiscal.

A loan or advance for which the principal or interest payment remained overdue for a period of 90 days turns NPA.

According to the data collated by the State Level Bankers' Committee (SLBC), the NPA rate is highest in the case of agriculture term loans at 16.97 per cent. For overall agriculture sector, this stood at 9.88 per cent.

 

NPA for MSMEs is pegged at 12.55 percent while it is 12.51 per cent and 6.57 per cent respectively for education and housing loans. The stressed assets of public sector banks, private sector banks, regional rural banks and co-operative banks stood at 13.53 per cent, 0.57 per cent, 23.04 per cent and 6.67 per cent respectively.

"The banks are facing problem to recycle the funds owing to non repayment of loans, mounting over due and rising NPA. Banks and government departments have to make joint efforts with specific strategies to improve the recovery performance for better recycling of funds", said SLBC in its quarterly report.

The overdue percentage of banks in Odisha stood at 39.54 for the last financial year.

For Prime Minister's Rozgar Yojana (PMRY), Prime Minister's Employment Generation Programme (PMEGP), Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Self Help Groups (SHG), Weaver Credit Card(WCC), the NPA and overdue percentages are too high, which can only be rated as unsatisfactory, added the report.

NPA rates for PMRY/PMEGP, SHG, SJSRY and WCC are 37.08 per cent, 20.53 per cent, 25.35 per cent and 17.41 per cent respectively.

Deposits of the banks in the state have increased to Rs 218748.65 crore as on March 2016 from Rs 196232 crore recorded in March 2015. The year on year incremental deposit growth is 11.47 per cent. Similarly, total outstanding advances have increased from Rs 143614 crore from March, 2015 to Rs 163733.85 crore by this March end. The credit deposit ratio (CD ratio) computed on the advance figure sanctioned outside the state but utilised in the state as per Thorat committee recommendation stood at 74.85 per cent for the last financial year. However, the CD ratio on advance sanctioned and utilized in the state is calculated at 52.47 per cent.