Mumbai, May 30 (KNN) During the April-December period of FY23, the credit to MSMEs by scheduled commercial banks increased by 14.2 per cent year-on-year (YoY), as per Reserve Bank of India’s (RBI) FY23 annual report published on Tuesday.

The increase is from 11.7 per cent in the corresponding period of the previous year.

Bank credit to MSMEs till the end of December in FY23 stood at Rs 21.5 lakh crore to 2.13 crore loan accounts vis-a-vis Rs 18.8 lakh crore to 2.47 crore accounts till December FY22.

In the entire FY22, overall Rs 20.1 lakh crore were deployed to 2.64 crore MSME accounts in comparison to Rs 17.8 lakh crore to 4.20 crore accounts in FY21.

“Increasing the flow of credit to the MSME has been a policy priority of the Reserve Bank and the government of India,” said the apex bank in its report.

About 45 per cent (Rs 9.78 lakh crore) of the total loan amount to MSMEs in FY23 (till December) was deployed to 1.93 crore micro units.

While 34 per cent (Rs 7.34 lakh crore) of the amount was deployed to 16.83 lakh small enterprises and only 20 per cent (Rs 4.37 lakh crore) was deployed to 3.20 lakh medium enterprises.   (KNN Bureau)