Review of performance of

Pradhan Mantri Mudra Yojana

(An analysis on the performance of PMMY during FY 2015-16)

hetbpeer meHeuelee keer kegbpeer

 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

MUDRA/PMMY
Micro Units Development & Refinance Agency Limited (MUDRA) and Pradhan
Mantri MUDRA Yojana (PMMY) were launched on 08 April 2015 by the Honble
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 on-
boarding 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 2nd October
2015. The campaign culminated in mega credit camps in different locations in the
country from 25th September 2015 to 02nd 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:

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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.

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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.

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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)

9389.86
South 16426.35
5668.02

4219.29
East 7116.48
3746.97

7143.29
West 7312.05
3478.55

9022.46
North 9436.71
4090.28

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.

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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)

133143
South 894722
10393227

60397
East 387317
8411412

95994
West 353201
7326264

120883
North 434221
6270143

0 2000000 4000000 6000000 8000000 10000000 12000000

Tarun Kishore Shishu

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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)

9415.84
South 16765.84
20917.85

4224.92
East 7200.78
14491.25

7171.12
West 7494.02
14581.37

9041.88
North 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.
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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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%.

New Entrepreneurs
Bank Type Disbursement
No. of A/c
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

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

New En
ntrepreneu
urs - No. of A/c
105518

3822226

60490
094

1777400

720430

Public Sector
S Bank Private Sector Bank and Foreiggn Bank
Regoinaal Rural Bank NBFC -MFI
Non NB
BFC-MFI

New Entrepren
neurs - Disb
bursementt Amt in Rss. Cr
142.552

102213.16

50088.39

35463.13
80000.88

Public Sector
S Bank Private Sectorr Bank and Foreiign Bank
Regoin
nal Rural Bank NBFC -MFI
Non NB
BFC-MFI

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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.

Women Entrepreneurs
Bank Type Disbursement
No. of A/c
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

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

Women Entrepre
eneurs - No
o. of A/c
743980
0 1475907
292127
7
215379
90

229
962461

Public Sector Bank Private Sector Bank and Forreign Bank

Regoinal Rural Bank NBFC -MFI
Non NBFC-MFI
N

Wo
omen Entreepreneurs - Disburseement in Rs. cr
1878.3
36

10352.09

6450.744

42047.05
2462.19
9

Public Sector Bank Private Sector Bank and Forreign Bank

Rego
oinal Rural Bank NBFC -MFI
Non NBFC-MFI

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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

SC ST OBC
Bank type
No. of Disbursement No. of Disbursement No. of Disbursement
A/c Amt in ` Cr A/c Amt in ` Cr A/c Amt in ` Cr

Public Sector Bank 360306 3028.38 159962 1364.22 901691 7238.35

Private Sector 584695 1672.37 165103 438.99 1106900 3759.34

Bank and Foreign
Bank

Regional Rural 171655 1227.81 87300 664.73 462525 3285.69

Bank

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

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

PMMY - Categorywise
OBC

No. of A/c

No. of A/c
ST

No. of A/c
SC

0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000

Series6 Non NBFC-MFI

NBFC -MFI Regoinal Rural Bank
Private Sector Bank and Foreign Bank Public Sector Bank

PMMY - Categorywise
OBC

Disbursement in Rs. Cr

Disbursement in Rs. Cr
ST

Disbursement in Rs. Cr
SC

0 2000 4000 6000 8000 10000 12000 14000 16000 18000

Non NBFC-MFI NBFC -MFI

Regoinal Rural Bank Private Sector Bank and Foreign Bank
Public Sector Bank

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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%.

Minority
Bank Type Disbursement
No. of A/c
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

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

Minority - No. of A
A/c
74077
7

498634

448106

147011

2920382

Public Sector Bank Private Sectorr Bank and Foreign Bank

Regoin
nal Rural Bank NBFC -MFI
Non NBFC-MFI

Min
nority - Disbursem
D ment Am
mt in Rs. Cr
118.9
97

4580.73 5313.69

1424.18
2122.73

Public Sector Bank Private Sectorr Bank and Foreign Bank

Regoin
nal Rural Bank NBFC -MFI
Non NBFC-MFI

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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
Amt in ` Cr
PMJDY OD
Bank Type
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

46.3
0.1

227.62

Public Sector Bank Private Sector Bank and Foreign Bank Regoinal Rural Bank

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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

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 Review of performance of Pradhan Mantri Mudra Yojana (PMMY) 2015-16

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. Target Amount

Type of the institution
No. 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

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