Post News Network
Bhubaneswar, Feb 27: At a time when mounting bad loan has riled the banking system in the country, scenario in the state seems to be no better with ratio of non-performing asset (NPA) standing at 9.49 per cent by the end of December quarter of current fiscal year.
As per a recent report released by the State Level Bankers’ Committee (SLBC), public sector banks had a larger share of bad loan which stood at 10.53 per cent during this period. In comparison, private sector banks had a 0.68 per cent NPA ratio, showing a significant divergence.
Meanwhile, Regional Rural Banks (RRBs) had a NPA ratio of 24.11 per cent and Cooperative banks had a bad loan of 7.52 per cent by the end of December quarter.
“The NPA percentage of the state is 9.49 and overdue percentage is 42.52 which are at much higher side and alarming. Rising NPA in Orissa is a matter of great concern,” the report said.
For PMRY (Prime Minister Rozgar Yojana) / PMEGP (Prime Minister’s Employment Generation Programme) / SJSRY(NULM)/ SHG(NRLM) / WCC, the NPA and overdue percentage are too high, which can only be rated as unsatisfactory, the report noted.
“The banks are facing problem to recycle the funds owing to non repayment of loans, mounting overdue and rising NPA ratio. Banks and government departments have to make joint efforts with specific strategies to improve the recovery performance for better recycling of funds,” the report added.
