MSME Credit Offtake Exhibit 14.6% Reaches Rs 26 Lakh Crore In September 2024
Date
11/2/2024 2:06:24 PM
(MENAFN- KNN India)
New Delhi, Nov 2 (KNN) Scheduled commercial banks' gross credit to micro, small and medium enterprises (MSMEs) under priority sector lending has recorded a significant increase of 14.6 percent, reaching Rs 26.01 lakh crore in September 2024, according to the latest sectoral deployment data released by the Reserve bank of India (RBI) on Thursday.
This marks a substantial rise from Rs 22.68 lakh crore reported in September of the previous fiscal year.
The data reveals that MSME priority credit constituted 15.2 percent of India's total non-food credit, which stood at Rs 171 lakh crore during September.
Within the MSME sector, the micro and small enterprise (MSE) segment witnessed a 13.1 percent growth, reaching Rs 20.57 lakh crore, while medium enterprises recorded an impressive 20.8 percent increase to Rs 5.43 lakh crore during the same period.
RBI Governor's recent initiatives to strengthen MSME financing have included calls for banks and financial institutions to develop specialised financial products.
Speaking at an event in September, the Governor emphasised the importance of flexible credit options and improved access to working capital, highlighting their potential to boost MSME productivity and job creation.
However, credit ratings agency Crisil has projected a moderation in MSME credit growth for FY24.
The agency forecasts growth rates to settle around 15 percent, down from approximately 19 percent in the previous fiscal year.
Despite this expected slowdown, Crisil remains optimistic about the sector's prospects, citing factors such as downstream capex revival, the Atmanirbhar Bharat initiative, and benefits from the Production-Linked Incentive scheme.
The agency also notes that the increasing formalisation of the sector and improving digital infrastructure continue to expand banks' addressable market in the MSME segment.
(KNN Bureau)
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