NPAs in SHG loans see jump, states told to collect dues

In all, 22 states and Union territories had a higher ratio of NPAs in SHG loans than the national average.

With the proportion of non-performing assets (NPAs) in bank loans given to self-help groups (SHGs) seeing a steady rise in the previous financial year, the Union Ministry of Rural Development has asked states to “monitor the status of NPA district-wise” and take “corrective measures” to “recover overdue/ outstanding dues”. In some states, NPAs make up more than a quarter of the loans taken by SHGs, with Uttar Pradesh seeing a 15% jump.

The ministry asked state officials to take action during a Performance…