Banking & FinanceNews

RBI Data Shows 9.1% Growth in Banking Credit to Micro Enterprises

The bank credit to micro and small enterprises (MSEs) on year-on-year (YoY) has increased after consecutive negative growth for three months in December 2021, shows the Reserve Bank of India (RBI) data.

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The credit disbursed in December to MSEs soared at 9.1 per cent to Rs 12.53 lakh crore from Rs 11.48 lakh crore deployed during the year-ago period, revealed the RBI data on sectoral deployment of bank credit for that month.

While for the previous three months from December, 2021, the YoY growth had remained negative at minus 2.2 per cent, minus 0.5 per cent, and minus 2.6 per cent during September, October, and November.

The total bank credit deployed to the MSME sector in December 2021 was Rs 15.30 lakh crore, up 14 per cent from Rs 13.41 lakh crore in November 2021 which resulted the share of bank credit to MSME in India’s total gross bank credit of Rs 116.83 lakh crore in December also increased to 13 per cent from 12.01 per cent in November and 12.17 per cent in October.

Hence, to support credit outreach among MSMEs the government announced the extension of ECLGS in the union budget on Tuesday along with a coverage of Rs 50,000 crore to a total of Rs 5 lakh crore.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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