Credit for MSMEs Grew Highest in Five Quarters: Report

Credit for MSMEs Grew Highest in Five Quarters: Report

Commercial credit exposure to the Micro, Small and Medium Enterprise (MSME) sector has shown the highest growth rate in the last five quarters, shows a new report.

A quarterly Report on MSME sector published jointly by Small Industries Development Bank of India (SIDBI) and TransUnion CIBIL shows that the overall commercial credit exposure (Y-o-Y) has shown the highest growth rate in the last five Quarters.

The 2nd Edition of report further states that the total on-balance sheet commercial lending exposure in India stood at Rs.54.2 lakh crores, as of March 2018 with Micro and SME segment constituting Rs.12.6 lakh crores, which contributes to ~23% of commercial credit outstanding.

While the growth in NPA rate has moderated, it is too early to conclude that the NPA problem is close to bottoming out.

The findings show that the MSME segment has left behind the short-term impact of GST and demonetisation and they are firmly back on growth path with the segment having exposure below INR 25 crore growing at 15%.

High growth in new to credit shows positive impact of GST. New-to-credit (NTC) borrowers are expected to be 5 lakh plus from April,18 to September 2018, which is 21% higher than NTC observed from October, 2017 to March, 2018.

To sum-up, the second edition of MSME Pulse Report by SIDBI-TransUnion CIBIL reveals a broad based recovery in commercial credit growth and also shows that MSME segment continues with strong growth and stable asset quality.

Share it
Tagged with

Leave a Reply

Your email address will not be published. Required fields are marked *