MSME Credit Deployment Grows 13.5% Yoy: RBI
(MENAFN- KNN India)
New Delhi, Jan 4 (KNN)
Bank lending to the Micro, Small and Medium Enterprise (MSME) sector demonstrated strong momentum, with gross credit deployment reaching Rs 26.48 lakh crore in November 2024, marking a 13.5 percent increase from Rs 23.32 lakh crore in the corresponding period last year, according to the Reserve bank of India's latest sectoral credit deployment data.
The MSME sector accounted for 15.5 percent of the total non-food credit of Rs 170 lakh crore extended by scheduled commercial banks.
Within the MSME segment, micro and small enterprises (MSEs) attracted the lion's share of credit at Rs 20.92 lakh crore, registering an 11.7 percent growth compared to November 2023.
Medium enterprises witnessed even more robust growth, with credit deployment surging by 20.7 percent to reach Rs 5.56 lakh crore, up from Rs 4.60 lakh crore in the previous year.
The lending landscape for MSMEs is poised for transformation with the Reserve Bank of India's upcoming launch of the unified lending interface (ULI), designed to facilitate bank credit based on alternative data.
The platform, currently in its pilot phase, has already demonstrated significant traction, processing over 6 lakh loans totaling Rs 27,000 crore as of December 6, 2024.
Of these, MSMEs have benefited from 1.60 lakh loans amounting to Rs 14,500 crore, as reported in the central bank's comprehensive banking report.
The sector's growing significance in India's credit ecosystem is further emphasised by the total outstanding bank credit to MSMEs, which stood at Rs 27.25 lakh crore at the end of March 2024, representing 19.3 percent of the total adjusted net bank credit (ANBC).
This substantial share underscores the crucial role of MSMEs in driving credit growth and economic activity.
(KNN Bureau)
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