Bank loan to MSMEs: Credit growth to micro, small businesses contracts in September from year ago

Credit and Finance for MSMEs: The total gross bank credit of Rs 13.20 lakh crore deployed to the MSME sector in September 2021 was 12.04 per cent of India's overall gross bank credit of Rs 109.56 lakh crore.

Credit and Finance for MSMEs: After two months of positive growth in year-on-year (YoY) gross bank credit deployment to micro and small enterprises (MSEs), the credit growth again slipped into negative in September 2021 despite post-Covid economic recovery and ease in pandemic-related restrictions. Banks deployed Rs 11 lakh crore, down minus 2.6 per cent from Rs 11.13 lakh crore in September 2020, showed the Reserve Bank of India’s (RBI) latest data on the deployment of gross bank credit to major sectors.

The contraction followed 0.2 percent of YoY growth in July and 1.1 per cent growth in August 2021 after the preceding three months of negative YoY growth from minus 2.2 per cent in April to minus 3.6 percent in May and minus 3.5 percent in June, data from RBI’s previous bulletins showed.

Read more at Financial Express