- Financial Express
Bank credit to micro, small enterprises continues to surge; jumps 27% in May from year-ago: RBI data
Credit and Finance for MSMEs: Year-on-year (YoY) growth in gross bank credit deployed to micro and small enterprises (MSEs) saw a significant jump of 27 percent in May from 19.7 percent in April, recent data on sectoral deployment of bank credit by the Reserve Bank of India (RBI) showed. Banks disbursed Rs 14.23 lakh crore in May 2022 from Rs 11.20 lakh crore in May 2021. In April, Rs 14.08 lakh crore was deployed to MSEs from Rs 11.77 lakh crore in April 2021. YoY growth in bank credit to MSEs has been surging since December 2021, indicating the negligible impact of the third Covid wave after declining for three straight months from September to November.
“MSME sector, which was hit hard by the pandemic, is showing signs of revival (with) aggregate credit to the sector witnessed a strong revival during Q4 2021- 22 supported by significant growth in lending by private banks,” RBI said in its latest Financial Stability Report launched earlier this week.