Bank credit share to MSEs increased a bit compared to previous year: RBI data
New Delhi, Dec 3 (KNN) The share of bank credit to Micro and Small Enterprises (MSEs) increased 1.6 per cent in October compared to previous year 1.2 per cent in the same month of 2017, according to data issued by Reserve Bank of India (RBI).
Though, the share of bank credit to MSEs has been shrinking since three years from 5.9% in October 2015 to 4.5% in October 2018.
Credit to industries (comprising Micro & Small, Medium and Large) rose 3.7 per cent while it had dropped 0.2 per cent in the same period last year.
Credit to medium enterprises grew the most, by 10.9 per cent over the previous year.
Further, the data revealed that the credit to Non Bank Financial Companies (NBFCs) rose 55 per cent in October, against growth of 8.1 per cent in the same month of 2017.
Personal loans grew 16.8 per cent; it was a rise of 16 per cent in October 2017. Loans for housing and credit cards had the largest rise.
The data further revealed that the credit to gems & jewellery sector witnessed a decline of 0.3 per cent over the previous year’s October.
Also, the credit to consumer durables saw a sharp decline of 81.6 per cent over the previous year’s October.
While credit to agriculture and allied activities rose eight per cent in October, as compared with one of 5.5 per cent in October 2017.