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Growth in Bank credit to MSEs in June drops

August 02, 2023

Growth in Bank credit to MSEs in June drops
The gross bank credit by scheduled commercial banks deployed to micro and small enterprises (MSEs) under priority sector lending in June 2023 grew 19 per cent in comparison to 22.6 per cent growth during June 2022. According to the latest sectoral deployment data from the Reserve Bank of India (RBI), MSEs were deployed ₹16.95 lakh crore in June vis-a-vis ₹14.25 lakh crore in June last year. In comparison, ₹11.62 lakh crore were deployed in June 2021. 

Deployment in the medium-sized enterprise segment also recorded growth of 15.1 per cent to ₹4.18 lakh crore in June this year from ₹3.63 lakh crore in June last year wherein 48.1 per cent growth was recorded from ₹2.45 lakh crore deployed in June 2021.
 
Overall, ₹21.14 lakh crore bank credit under priority sector lending 14.7 per cent of India’s total non-food bank credit worth ₹143.6 lakh crore was deployed in the MSME sector in June 2023 in comparison to ₹20.20 lakh crore 14.5 per cent of India’s total non-food bank credit worth ₹138.5 lakh crore deployed in the MSME sector in May 2023. For the year-ago period, that is June 2022, ₹17.88 lakh crore – 14.4 per cent of non-food bank credit worth ₹123.4 lakh crore — were deployed in the MSME sector. 
 
Importantly, the credit outstanding to the MSME sector by scheduled commercial banks in FY23 had jumped by 12.3 per cent to ₹22.6 lakh crore from ₹20.11 lakh crore in FY22, according to the data shared by Bhanu Pratap Singh Verma, Minister of State in the MSME Ministry in a written reply to a question in the Rajya Sabha in June. The amount outstanding in FY21 and FY20 stood at ₹17.83 lakh crore and ₹16.13 lakh crore respectively.
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