Mumbai, May 9 (KNN) Non-Performing Assets (NPAs) in Micro Small and Medium Enterprises (MSMEs) continue to be lower than those of the large corporates, claimed TransUnion CIBIL-SIDBI MSME Pulse Report.

As per the latest edition of the said report revealed that in January this year, the NPA's rate for large corporates was at 19.7% while the NPA rate in the MSME segment stood at 12.5%.

''The total on-balance sheet commercial lending exposure in India stood at Rs 64.45 lakh crores as of January 2020 of which the MSME segment holds Rs 17.75 lakh crores credit exposure,'' said the report.

Within the MSME segment, Micro segment borrowers (aggregate credit exposure < Rs 1 crore) observed robust fresh credit disbursals worth Rs 92,262 crore in 2019.

This edition of MSME Pulse covers a study conducted on the assessment of the structural strength of MSMEs and classifies entities that are positioned strong to tide over the pandemic situation.

Speaking on the insights from this study, the MD and CEO of TransUnion CIBIL, Rajesh Kumar said, “The findings of the study make the case that structurally strong MSMEs are better positioned to survive the current pandemic situation and emerge stable. These MSMEs are the most eligible to receive financial assistance from credit institutions.''

''There is an opportunity here for banks and financial institutions to identify and fund these entities and build a healthy portfolio. Such targeted interventions can help refuel the economy through these unprecedented times while ensuring that portfolio risk is under control,” he added.

Among lenders, the private sector banks exhibited NPA levels in the range of 3-5 per cent in the MSME segment whereas, NPA level of public sector banks has increased from 18 per cent in December 2018 to 19 per cent in December 2019.

“The Micro segment can be the next growth driver for the economy and credit institutions must capitalize on this opportunity by identifying the Micro segment entities that have stood strong through the past disruptions and fund them during these times. Banks and credit institutions can play a pivotal role in fortifying the MSME sector and revitalize the economy by making astute lending and policy decisions based on sectoral data insights,” said Mohammad Mustafa, Chairman and Managing Director, SIDBI.