MSME - #SectorUpdates
Credit growth to the MSME sector has expanded by Rs 52,800 crores as of mid-July in the current fiscal 2022-23 against a de-growth of Rs 61,000 crore in the similar period previous fiscal, SBI Research said in its ecowrap report. Retail loans during the period expanded by Rs 1.34 lakh crores against a de-growth of Rs 26,500 crore last year. According to the Reserve Bank of India’s data on sectoral credit, gross bank credit deployed to micro and small enterprises (MSEs) had jumped 27 percent in May from 19.7 percent in April. In the last three months, non-food credit growth is running at double digits and the bulk of the loan is going to micro and small enterprises (MSEs) and personal loans. Meanwhile, under the government’s Emergency Credit Line Guarantee Scheme (ECLGS), 1,18,41,981 MSMEs and other businesses were supported as of March 2022 with fully guaranteed collateral-free loans since its launch in May 2020. Going forward analysts are expecting green shoots of recovery from the MSMEs.