Credit growth to MSME sector expanded by Rs 52,800 crores in current fiscal: SBI Research Report
Posted Date: 31st July 2022
Relating to which Act: The Micro, Small and Medium Enterprises Development Act, 2006
Type: News item
Pertains to Employer
Relevance of this news: Karma Management Global Consulting Solutions Pvt. Ltd. is a member of MSME Group and falls under MSME Category, especially in the class of “Service Enterprises”. Recently, the MD & CVO of Karma Management, Shri Pratik Vaidya headed the delegation of Indian Members to Select Summit USA 2022 and it was a great success with a huge number of participants. Efforts have started to connect with US Entrepreneurs on the export front, both products and services.
Subject: Credit growth to MSME sector expanded by Rs 52,800 crores in current fiscal: SBI Research report
Credit growth to MSME sector expanded by Rs 52,800 crores in current fiscal: SBI Research report
Credit and finance for MSMEs: “It’s clearly evident that the demand for credit is still continuing,” said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI in the eco wrap report.
According to the Reserve Bank of India’s data on sectoral credit, gross bank credit deployed to micro and small enterprises (MSEs) had jumped 27 percent in May from 19.7 percent in April.
Credit and finance for MSMEs: Credit growth to the MSME sector has expanded by Rs 52,800 crores as of mid-July in the current fiscal 2022-23 against a de-growth of Rs 61,000 crore in the similar period previous fiscal, SBI Research said in its eco wrap report. Retail loans during the period expanded by Rs 1.34 lakh crores against a de-growth of Rs 26,500 crore last year. “It’s clearly evident that the demand for credit is still continuing,” said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI in the report.
In FY23, credit growth has gained further traction over FY22 and has recorded a 3-year high growth of 14 percent (YoY) as of July 15, 2022, the report published on July 29 noted. The incremental growth (YTD) in credit is Rs 3.8 lakh crore (3.3 percent) to date.
Credit growth to MSME sector expanded by Rs 52,800 crores in current fiscal: Reserve Bank of India’s data
According to the Reserve Bank of India’s data on sectoral credit, gross bank credit deployed to micro and small enterprises (MSEs) had jumped 27 percent in May from 19.7 percent in April. Banks disbursed Rs 14.23 lakh crore in May 2022 from Rs 11.20 lakh crore in May 2021. The overall credit deployed to the MSME sector in May stood at Rs 17.81 lakh crore vis-a-vis Rs 17.63 lakh crore deployed in April.
“Banks are doing quite well with respect to the MSME sector. It is not that there are not enough schemes to provide loans to the MSME sector…In the last three months, non-food credit growth is running at double digits and bulk of the loan is going to micro and small enterprises (MSEs) and personal loans,” Chief Economic Advisor (CEA) V Anantha Nageswaran had said at the Modern BFSI Summit organized by Financial Express in Mumbai in June this year.
Meanwhile, under the government’s Emergency Credit Line Guarantee Scheme (ECLGS), 1,18,41,981 MSMEs and other businesses were supported as of March 2022 with fully guaranteed collateral-free loans since its launch in May 2020, according to the data shared by the Union Minister of State for Finance Bhagwat Karad in Lok Sabha recently. 23 lakh businesses were supported during FY22 in comparison to 95.41 lakh beneficiaries during FY21.
