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Bank credit to micro, small enterprises up 17% in July

September 04, 2023

Bank credit to micro, small enterprises up 17% in July
The gross bank credit deployed in July 2023 to micro and small enterprises (MSEs) under priority sector lending by scheduled commercial banks grew 16.9 per cent in comparison to 17.8 per cent growth during July last year. 

According to the latest sectoral deployment data from the Reserve Bank of India (RBI), banks deployed ₹16.78 lakh crore to MSEs in June in comparison to ₹14.36 lakh crore in June 2022. In June 2021, ₹12.19 lakh crore was deployed. 
 
The disbursement in medium enterprises recorded 10.9 per cent growth in July vis-a-vis 38.3 per cent growth in July last year. Banks deployed ₹4.07 lakh crore to medium units in July while ₹3.67 lakh crore was deployed in July last year and ₹2.65 lakh crore in July 2021.
 
Overall, ₹20.86 lakh crore bank credit under priority sector lending 14.1 per cent of India’s total non-food bank credit worth ₹147.8 lakh crore was deployed in the MSME sector in July this year against ₹21.14 lakh crore deployed in June. In July 2022, ₹18.03 lakh crore 14.6 per cent of non-food bank credit worth ₹123.3 lakh crore was deployed in the MSME sector. 
 
In FY23, Punjab National Bank (PNB), Bank of Maharashtra and Union Bank of India were the top MSME lenders deploying the maximum number of collateral-free MSME loans up to ₹10 lakh and ₹10 lakh to ₹25 lakh as of March 2023, FE Aspire had reported.
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