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Emerging signs of stress in MSME sector, bad loans on the rise: RBI
There are emerging signs of stress in micro, small and medium enterprises (MSME) and the microfinance segment.
This calls for close monitoring of these portfolios, said the Reserve Bank of India (RBI) in its Financial Stability Report (FSR).
Credit to the MSME segment slowed (year-on-year) by the end of September 2021 vis-a-vis March 2021. The decline was particularly noticeable in the sub Rs 25 crore ticket size across major bank groups, it said.