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Bank credit to micro, small enterprises jump 23%

August 03, 2022

Bank credit to micro, small enterprises jump 23%
Bank credit to micro and small enterprises (MSEs) continued to expand year-on-year (YoY), registering 23.7 percent growth in June 2022 against a contraction of 0.6 percent in June 2021, showed the latest data by the Reserve Bank of India (RBI) on sectoral deployment of bank credit. 

The gross bank credit deployed to MSEs in June stood at ₹14.29 lakh crore vis-a-vis ₹11.55 lakh crore deployed in June last year and ₹11.62 lakh crore in June 2020. 

In May, the credit growth stood at 27 percent with ₹14.23 lakh crore deployed to MSEs, up from ₹11.20 lakh crore in May 2021. Likewise, a 19.7 percent jump was recorded in April with ₹14.08 lakh crore deployed to MSEs in comparison to ₹11.77 lakh crore in April 2021.

Banks reported healthy YoY credit growth of 60 percent to medium enterprises as well with ₹3.63 lakh crore deployed in June this year from ₹2.26 lakh crore in June 2021. The growth was higher at 64.8 percent in May 2022 with ₹3.57 lakh crore deployed in comparison to ₹2.16 lakh crore during the year-ago period. 

Overall bank credit deployed to the entire MSME sector in June was ₹17.93 lakh crore, marginally up from ₹17.81 lakh crore deployed in May and ₹17.63 lakh crore in April. The share of bank credit to MSMEs in India’s gross bank credit of ₹121.49 lakh crore in June 2022 stood at 14.76 percent, slightly down from 14.80 percent in May. 

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