Rs.6,246 Crore Education Loan NPA in Government Banks

Indian banks are going slow on sanctioning education loans. Government data show that around 8% of such loans issued by them till the June quarter were non-performing assets (NPAs)—that is, 6,246 crore rupees ($767 million) out of Rs79,900 crore.

Indian Bank registered the highest NPA on education loans at more than 29%, followed by UCO Bank (18%).

Education loans NPA: Government Bank Wise Data

Indian BankRs.4,721 croreRs.1,380 crore
UCO BankRs.1,036 croreRs.188 crore
Indian Overseas BankRs.4,046 croreRs.716 crore
Central Bank of IndiaRs.3,484 croreRs.587 crore
Bank of IndiaRs.2,774 croreRs.382 crore
Punjab National BankRs.7,387 croreRs.969 crore
Canara BankRs.13,193 croreRs.512 crore
State Bank of IndiaRs.27,027 croreRs.603 crore


Education Loan NPA Private Banks

Private sector banks accounted for only around 7% of total outstanding education loans, while regional rural banks had 3% at end of March 2020, a Reserve Bank of India research paper show.

Reason for Education Loan NPA

The main reason for defaults is poor employment. In 2022, thousands were laid off at several multinational companies and startups.