Review of performance of Pradhan Mantri Mudra Yojana

Review of performance of Pradhan Mantri Mudra Yojana (An analysis on the performance of PMMY during FY 2015-16) hetbpeer meheàuelee keàer kegbàpeer

2 MUDRA/PMMY Micro Units Development & Refinance Agency Limited (MUDRA) and Pradhan Mantri MUDRA Yojana (PMMY) were launched on 08 April 2015 by the Hon ble Prime Minister, Shri Narendra Modi. The guidelines of PMMY issued by Department of Financial Services (DFS), GOI indicated that all banks are required to lend to micro enterprises engaged in manufacturing, processing, trading and service sector activities, for a loan upto ` 10 lakh. Further, it was also advised that the loan may be given in three categories, i.e. Loan upto ` 50,000 under Shishu; ` 50,000 to ` 5 lakh under Kishor; and ` 5 lakh to ` 10 lakh under Tarun. Also, it was envisaged that more focus will have to be given for the Shishu category. A target of ` 1,22,188 crore was set for F.Y. 2015-16. It was decided that MUDRA will monitor the progress of PMMY. The National Bank for Agriculture & Rural Development (NABARD) was also advised to closely monitor the progress of RRBs, as RRBs are under supervisory domain of NABARD. In order to make the monitoring more effective, a dedicated portal www.mudra.org. in was put in place to capture the data on the performance under PMMY on a weekly basis to have consolidated data of nationwide disaggregated retail transactions details, including data on new entrepreneurs, women entrepreneurs, SC/ST, Minority, MUDRA card etc. The data so collected was analyzed and reported to GOI. The progress was closely followed up with the banks for improvement, if any. A team of officers at Mission Mudra was constituted and placed with DFS for an overall supervision and follow up of the programme on behalf of GOI. Subsequently, it was also decided that the MUDRA loans given by MFIs also needs to be captured as most of the MFIs are MUDRA partners. Accordingly, MFIN was given the responsibility for following up with the NBFC- MFI and getting their data on the portal. Similarly, Sa-Dhan was made responsible for collecting the data and onboarding the same for the non NBFC MFIs. In order to give a boost to the lending under PMMY, especially for Shishu category loans, a credit campaign was carried out from 1stSeptember 2015 to 2 nd October 2015. The campaign culminated in mega credit camps in different locations in the country from 25 th September 2015 to 02 nd October 2015. In order to enhance the awareness of the programme, MUDRA carried out a month long publicity campaign, on behalf of DFS, through print media and Radio. The credit campaign resulted in lending to 22.50 lakh borrowers as against a target of 25 lakh borrowers and lent ` 4120 crore. With all these efforts, the target set under PMMY for the year 2015-16 was surpassed by the end of the year. A brief analysis of the performance is given on the next page:

Review of performance of PMMY during 2015-16 The data collected through portal has been analyzed and some of the salient features are as under: 1. Overall Achievement vis a vis target The overall performance of the Yojana indicates that the target has been achieved during the year. As against the target of ` 122188 crore, the Banks and MFIs together have disbursed ` 132954.73 crore, thereby achieving 109%. The achievements by Public Sector Banks indicate a substantial credit growth in this segment. Based on the data collected from the PSBs, it was seen that the disbursement by these banks in this segment was around ` 33,000 crore during the 2014-15 which has recorded a growth of 70% during 2015-16. The other lending institutions have also achieved high credit growth in this segment due to the initiative of Pradhan Mantri MUDRA Yojana. 3

2. Regional coverage Region wise performance by banks (No. of accounts) Category North West East South Total Shishu 2382453 1864905 1893789 2563432 8704579 Kishor 414020 331002 375376 852109 1972507 Tarun 120636 95641 60320 132814 409411 Total 2917109 2291548 2329485 3548355 11086497 % Share 26% 21% 21% 32% 100% North: Chandigarh, Haryana, HP, J&K, Delhi, UP, Uttarakhand, Punjab and Rajasthan West: Dadra & Nagar Haveli, D&Diu, Gujarat, Lakshadweep, MP, Maharashtra East: NE States, Odisha, WB, Sikkim, Bihar and Jharkhand South: Karnataka, Kerala, Pudicherry, TN, Telangana, AP, and Andaman & Nicobar All Banks - Performance regionwise (No. of A/c) South 132814 852109 2563432 East 60320 375376 1893789 West 95641 331002 1864905 North 120636 414020 2382453 0 500000 1000000 1500000 2000000 2500000 3000000 Tarun Kishore Shishu The regional coverage of the programme indicates that all the four regions had wide coverage, although there had been an edge for the Southern region. The other three regions were almost at par to each other. 4

Region wise performance by banks (Amount Disbursed) Amt in ` Cr Category North West East South Total Shishu 4090.28 3478.55 3746.97 5668.02 16983.82 Kishor 9436.71 7312.05 7116.48 16426.35 40291.59 Tarun 9022.46 7143.29 4219.29 9389.86 29774.9 Total 22549.45 17933.89 15082.74 31484.23 87050.31 % Share 26% 21% 17% 36% 100% Average Disbursed/ account (` in Thousand) 77 78 65 89 79 All Banks - Disbursement regionwise (Amt in ` Cr) South 5668.02 9389.86 16426.35 East 4219.29 3746.97 7116.48 West 3478.55 7143.29 7312.05 North 4090.28 9022.46 9436.71 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 Tarun Kishore Shishu As regards the amount disbursed, North and West regions were at par with that of the number of accounts financed, under the Yojana. However, the Southern region had a larger share in the amount disbursed by banks. The per account average amount disbursed also showed a similar pattern. 5

Region wise performance Banks and MFIs (No. of accounts) Category North West East South Total Shishu 6270143 7326264 8411412 10393227 32401046 Kishor 434221 353201 387317 894722 2069461 Tarun 120883 95994 60397 133143 410417 Total 6825247 7775459 8859126 11421092 34880924 % Share 20% 22% 25% 33% 100% All Banks - Performance regionwise (No. of A/c) South 133143 894722 10393227 East 60397 387317 8411412 West 95994 353201 7326264 North 120883 434221 6270143 0 2000000 4000000 6000000 8000000 10000000 12000000 Tarun Kishore Shishu 6

Region wise Performance Banks & MFIs (Amount Disbursed) Amt in ` Cr Category North West East South Total Shishu 12037.22 14581.37 14491.25 20917.85 62027.69 Kishor 9612.64 7494.02 7200.78 16765.84 41073.28 Tarun 9041.88 7171.12 4224.92 9415.84 29853.76 Total 30691.74 29246.51 25916.95 47099.53 132954.7 % Share 23% 22% 19% 35% 100% Average Amount Disbursed/ Account (` in thousand) 45 38 29 41 38 All - Disbursement regionwise (Amt in Rs. Cr) South 9415.84 16765.84 20917.85 East 4224.92 7200.78 14491.25 West 7171.12 7494.02 14581.37 North 9041.88 9612.64 12037.22 0 5000 10000 15000 20000 25000 Tarun Kishore Shishu The data indicate that the MFI has contributed substantially to the number of accounts financed under the Yojana. However, due to the smaller amount disbursed by them, it has steeply brought down the per capita average loan under the programme, with an average of `38000/ account, as against `79000/account in case of Bank Accounts. But MFIs have contributed substantially in the financing of Shishu category loans. 7

3. Individual Bank wise performance in terms of disbursement of loan: The State Bank of India with ` 12281.18 crore stands out among all the banks in lending under PMMY. It is followed by Canara Bank with ` 7506.64 crore and Punjab National Bank with ` 3593.42 crore. Among the Private Sector Banks, HDFC Bank with ` 5356.89 crore tops the list, followed by ` 3921.51 crore by ICICI Bank, ` 3594.64 crore by Indus Ind Bank, and ` 2229.17 crore by Axis Bank. As regards RRBs, Uttar Bihar Gramin Bank with ` 1350.90 crore had the highest lending under PMMY, followed by Karnataka Vikas Gramin Bank at ` 1070.05 crore and ` 1051.88 crore by Pragathi Krishna Gramin Bank at 1051.88 crore. 4. Financing for New entrepreneurs MUDRA loan is meant for funding the unfunded. It is available for both new units and expansion of existing units. The data of new entrepreneurs supported under PMMY, indicate that out of 3.49 crore accounts financed during the year, 1.25 crore accounts were for new entrepreneurs, which work out to 36%. Bank Type New Entrepreneurs No. of A/c Disbursement Amt in ` Cr Public Sector Bank 3822226 35463.13 Private Sector Bank and Foreign Bank 1777400 8000.88 Regional Rural Bank 720430 5088.39 NBFC -MFI 6049094 10213.16 Non NBFC-MFI 105518 142.52 Total 12474668 58908.08 8

New Entrepreneurs - No. of A/c 105518 3822226 6049094 720430 1777400 Public Sector Bank Regoinal Rural Bank Non NBFC-MFI Private Sector Bank and Foreign Bank NBFC -MFI New Entrepreneurs - Disbursement Amt in Rs. Cr 142.52 10213.16 5088.39 8000.88 35463. 13 Public Sector Bank Regoinal Rural Bank Non NBFC-MFI Private Sector Bank and Foreign Bank NBFC -MFI 9

5. Financing of Women Providing financial support to women entrepreneurs was one of the main objectives of PMMY. The data indicate that 2.76 crore women were funded out of the total number of 3.48 crore accounts, which is a whopping79%. MFIs contributed significantly for the financing women under PMMY. Bank Type Women Entrepreneurs No. of A/c Disbursement Amt in ` Cr Public Sector Bank 1475907 10352.09 Private Sector Bank and Foreign Bank 2153790 6450.74 Regional Rural Bank 292127 2462.19 NBFC -MFI 22962461 42047.05 Non NBFC-MFI 743980 1878.36 Total 27628265 63190.43 10

Women Entrepreneurs - No. of A/c 743980 1475907 2153790 292127 22962461 Public Sector Bank Regoinal Rural Bank Non NBFC-MFI Private Sector Bank and Foreign Bank NBFC -MFI Women Entrepreneurs - Disbursement in Rs. cr 1878.36 10352.09 6450.744 42047.05 2462.19 Public Sector Bank Regoinal Rural Bank Non NBFC-MFI Private Sector Bank and Foreign Bank NBFC -MFI 11

6. Share of SC/ST/OBC The NSSO survey of 2013 indicated that more than 60% of the micro enterprise units belonged to weaker sections. The data obtained under PMMY shows that 1.84 crore accounts financed by all the agencies under PMMY was for SC/ST/OBC categories, which is nearly 53% of the accounts financed. PMMY Categorywise Bank type No. of A/c SC ST OBC Disbursement Amt in ` Cr No. of A/c Disbursement Amt in ` Cr No. of A/c Disbursement Amt in ` Cr Public Sector Bank 360306 3028.38 159962 1364.22 901691 7238.35 Private Sector Bank and Foreign Bank Regional Rural Bank 584695 1672.37 165103 438.99 1106900 3759.34 171655 1227.81 87300 664.73 462525 3285.69 NBFC -MFI 4892200 8606.31 1241112 2239.07 8006075 15271.67 Non NBFC-MFI 105881 156.92 24869 35.02 131225 207.46 Total 6114737 14691.79 1678346 4742.03 10608416 29762.51 12

PMMY - Categorywise SC ST OBC No. of A/c No. of A/c No. of A/c 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000 Series6 NBFC -MFI Private Sector Bank and Foreign Bank Non NBFC-MFI Regoinal Rural Bank Public Sector Bank PMMY - Categorywise SC ST OBC Disbursement in Rs. Cr Disbursement in Rs. Cr Disbursement in Rs. Cr 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 Non NBFC-MFI Regoinal Rural Bank Public Sector Bank NBFC -MFI Private Sector Bank and Foreign Bank 13

7. Loans to Minority The loans provided by Banks and MFIs under PMMY for minorities indicate that 40.88 lakh accounts were of minorities, which is nearly 12%. Bank Type No. of A/c Minority Disbursement Amt in ` Cr Public Sector Bank 498634 5313.69 Private Sector Bank and Foreign Bank 448106 2122.73 Regional Rural Bank 147011 1424.18 NBFC -MFI 2920382 4580.73 Non NBFC-MFI 74077 118.97 Total 4088210 13560.30 14

Minority - No. of A/c 740777 498634 448106 147011 2920382 Public Sector Bank Regoinal Rural Bank Non NBFC-MFI Private Sector Bank and Foreign Bank NBFC -MFI Minority - Disbursement Amt in Rs. Cr 118.97 4580.73 5313.69 1424.18 2122.73 Public Sector Bank Regoinal Rural Bank Non NBFC-MFI Private Sector Bank and Foreign Bank NBFC -MFI 15

8. OD against PMJDY account Among the loanees availing of financial assistance under PMMY included 24.17 lakh O/D facilities against their PMJDY accounts. The amount disbursed under this arrangement was to the tune of ` 274.02 crore, the average per account works out to be ` 1134. PMMY - PMJDY OD Accounts Bank Type Amt in ` Cr PMJDY OD Account Public Sector Bank 227.62 Private Sector Bank and Foreign Bank 0.1 Regoinal Rural Bank 46.3 Total 274.02 PMJDY OD Account 0.1 46.3 227.62 Public Sector Bank Private Sector Bank and Foreign Bank Regoinal Rural Bank 16

9. Disbursement through MUDRA card MUDRA Card is an innovative product introduced during the year to take care of the frequent and flexible credit needs of small borrowers. The card is issued as a Debit card on RuPay platform and can be used for drawl of funds and also repayment as and when there is surplus, so that the loan amount can be managed judiciously. The card was introduced during the year which was adopted by most of the PSBs, RRBs and a few Private Sector Banks too. The total number of card issued during the year was at 5.17 lakh for an amount of ` 1476.96 cr. An amount of ` 1391.25 crore was withdrawn by the borrowers. The average amount of MUDRA card works out to ` 28567 per card. MUDRA Cards Amt in ` Cr Bank Type MUDRA cards Public Sector Bank 1290.07 Private Sector Bank and Foreign Bank 0 Regional Rural Bank 101.18 Total 1391.25 Mudra card 0 101.18 1290.07 Public Sector Bank Private Sector Bank and Foreign Bank Regoinal Rural Bank 17

10. Target for FY 2016-17 Government of India has set a target of ` 1,80,000 crore for FY 2016-17 to SBI & Associates, Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, NBFC-MFIs and Non-NBFC MFIs as per the details given below: Sr. No. Type of the institution Target Amount in ` crore 1 Public Sector Banks 77,700 2 Private Sector Banks & Foreign Banks 21,000 3 Regional Rural Banks 15,000 4 NBFC MFIs 64,240 5 Non NBFC MFIs 2,060 Total 1,80,000 18

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