BackECONOMY
In Madhya Pradesh Welfare Schemes, A Tale Of Two Halves
The article portrays Madhya Pradesh's welfare schemes as split between positive numbers and underlying crises. The State Level Bankers' Committee report shows lending activity rising while recovery weakens; Ladli Behna SHGs show strong repayment despite overall challenges. The piece also highlights high NPAs in housing and self-employment schemes, limited participation by private banks, and substantial growth in PMJDY accounts driven by women.
Why It Matters
These trends affect banking stability and the effectiveness of welfare programs, raising questions about debt recovery, inclusion, and the sustainability of large-scale government schemes.
Timeline
7 Events
Overall takeaway: two halves of MP welfare schemes
April 24, 2026
The article frames the MP welfare programmes as two halves: impressive numerical targets in some schemes but growing failures in others. The Ladli Behna SHGs are highlighted as a counterexample of discipline and accountability amid wider systemic struggles.
Public vs private sector banks in welfare schemes
April 24, 2026
Public sector banks are carrying the burden of implementing these welfare schemes and are performing beyond targets, while private sector banks have shown limited participation, leading to an uneven distribution of risk.
PMJDY accounts and women's participation
April 24, 2026
Under the Pradhan Mantri Jan Dhan Yojana, bank accounts in the state rose from 1.19 crore to 4.66 crore. Deposits total Rs 18,318 crore, with the average balance increasing from Rs 445 to Rs 3,931. About 55% of these accounts belong to women.
NPA distribution across welfare schemes
April 24, 2026
The distribution of bad loans shows 67.9% NPAs under the Chief Minister Rural Housing Mission; 42.9% under CM Udyam Kranti and self-employment schemes; 40% for Bhagwan Birsa Munda self-employment; 12.1% for Pradhan Mantri Mudra loans; 7.1% for Pradhan Mantri Employment Generation Programme; 5.2% for PM SVANidhi; and 2.4% for Ladli Behna self-help groups.
Tribal schemes: Denotified, nomadic and semi-nomadic groups
April 24, 2026
Schemes for denotified, nomadic, and semi-nomadic tribes have achieved only 11.8% of their targets. Under the Tantya Mama scheme, 2,743 applications have been approved against a target of 5,000.
SLBC report highlights current lending and recovery trends
April 24, 2026
The State Level Bankers' Committee's latest report indicates lending pace has accelerated while the ability to recover funds is weakening. Ladli Behna self-help groups have taken loans totaling Rs 3,570 crore with an NPA of 2.4%, and the CM Rural Housing Mission has disbursed Rs 1,670 crore with an NPA rate of 67.9%. Self-employment schemes show a high on-paper achievement of 127%, but on-ground reality reveals about 42.9% of Rs 422 crore in loans turning into bad debts; collectively these schemes account for nearly Rs 2,100 crore in NPAs. Banks report constraints due to government agreements that limit closeouts or one-time settlements.
Five years ago: Housing scheme NPA at 46%
April 2021
The article notes that five years before 2026, the NPA rate under the Chief Minister Rural Housing Mission was 46%.