"Credit growth to MSME sector expanded by Rs 52,800 crores in current fiscal: SBI Research report"

Credit growth to the MSME sector has expanded by Rs 52,800 crores as of mid-July in the current fiscal 2022-23 against a de-growth of Rs 61,000 crore in the similar period previous fiscal, SBI Research said in its eco wrap report. Retail loans during the period expanded by Rs 1.34 lakh crores against a de-growth of Rs 26,500 crore last year. “It’s clearly evident that the demand for credit is still continuing,” said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI in the report.

In FY23, credit growth has gained further traction over FY22 and has recorded a 3-year high growth of 14 percent (YoY) as of July 15, 2022, the report published on July 29 noted. The incremental growth (YTD) in credit is Rs 3.8 lakh crore (3.3 percent) to date. According to the Reserve Bank of India’s data on sectoral credit, gross bank credit deployed to micro and small enterprises (MSEs) had jumped 27 percent in May from 19.7 percent in April.

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