Hyderabad: Telangana has emerged as the second-highest state in the country in terms of non-performing assets (NPAs) related to Self-Help Group (SHG) loans, according to data presented in Parliament.
As of September 30, 2025, SHG loans worth Rs 616.81 crore in Telangana had turned into NPAs, Union Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha while replying to a question.
In his written response, the minister stated that Tamil Nadu topped the list nationwide, with SHG NPAs amounting to Rs 1,359 crore. Telangana followed in second place, highlighting a significant stress in the repayment performance of SHG-linked credit in the state.
Rising NPAs a concern
Self-Help Groups play a crucial role in promoting financial inclusion, particularly among women and rural communities.
Rising NPAs in this segment are seen as a matter of concern, as they can impact both the sustainability of SHGs and the banking system’s confidence in extending further credit.
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