13% rise in Priority Sector Credit for Micro & Small Enterprises in February

New Delhi, Apr 5 (KNN) Priority sector credit by value allotted to Micro and Small enterprises (MSEs) by scheduled commercial banks in February 2023 increased by 13 per cent on year-on-year basis, as per the latest monthly data on sectoral deployment of bank credit released by RBI.

According to a report in the Financial Express, MSEs were deployed Rs 15.61 lakh crore in bank credit in February this year. Overall, credit deployed by banks to MSEs and medium units in February 2023 stood at Rs 19.52 lakh crore. 

Credit to medium-sized enterprises also witnessed growth of 12.4 per cent in February 2023, increasing from Rs. 3.47 lakh crore deployed in February 2022 to Rs. 3.90 lakh crore in February this year.

During the eight-year period from FY15 till FY22, credit to MSME by scheduled commercial banks increased by 71 per cent from Rs 11.71 lakh crore to Rs 20.11 lakh crore, according to the data shared by the Minister of State, Ministry of MSME, Bhanu Pratap Singh Verma in a written reply to a question raised in the Parliament last month.

Despite these trends of increased credit to MSMEs, the gap in credit demand and supply still remains a major concern as highlighted by RBI’s deputy governor M. Rajeshwar Rao while addressing the 31st Annual Management Convention of Thrissur Management Association.

He also said that this gap in credit demand and supply to MSMEs is a potential area of opportunity for banks and other Financial Institutions.  (KNN Bureau)