The HinduDec 13, 2021Data | MSMEs continue to be most stressed sector, urban cooperative banks at riskAs of August 2020, 89.6% of all loans given by Urban Cooperative Banks to the MSME sector were under moratoriumA 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.Read more at The Hindu
As of August 2020, 89.6% of all loans given by Urban Cooperative Banks to the MSME sector were under moratoriumA 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.Read more at The Hindu
