- The Hindu
Data | MSMEs continue to be most stressed sector, urban cooperative banks at risk
As of August 2020, 89.6% of all loans given by Urban Cooperative Banks to the MSME sector were under moratorium
A higher share of loan recipients from the Micro, Small and Medium Enterprises (MSME) sector opted for the COVID-19-related moratorium in August 2020 compared to April 2020.
Corporate and individual borrowers did the opposite - more opted out of the moratorium in August 2020 after initially availing of it in April 2020. This points to a relatively higher stress in the MSME sector.
Urban Cooperative Banks (UCBs) will bear the brunt of this stress as more than 30% of their loans have gone to the MSME sector as of March 2020, and close to 90% of those loans were under moratorium as of August 2020.