Mumbai, Jul 12 (KNN) The micro and small enterprises are better off in terms of deployment of gross bank credit as compared to the large and medium enterprises, according to the April-May RBI data.

While the credit deployment in micro and small firms grew by 20.6 per cent in April-May, the expansion of credit to medium scale companies was only 7.8 per cent underscoring the slowdown these firms are facing.

Further, the sector-wise analysis of the credit deployment shows that the slowdown is seen significant among the transport operators. Their credit growth was only 4.5 per cent in April-May this year as compared to the same period last year.

Credit given to priority sector including agriculture and allied activities and micro and small enterprises (MSEs) was up 16.3 per cent.
  
Under MSEs, growth in deployment of gross credit to manufacturing alone was 20.6 per cent, whereas credit given to service sector was 27.1 per cent, which is among the highest.

Further the growth deployment of gross bank credit for export is 22.1 per cent.

Moreover, service sector which includes, transport operators, computer software, tourism, hotels and restaurants, shipping, professional services and trade witnessed 14.6 per cent credit expansion by banks.

Under service sector, tourism which comprises hotels and restaurants business, the credit expansion by was 9 per cent.

The credit given to retail trade saw the highest growth at 27.8 per cent followed by vehicle loans, while it is the lowest for Non-Banking Financial Companies (NBFCs) at 2.8 per cent.   

Priority sector includes agriculture, small-scale industries, cottage sector, tiny sector, export sector and other small business (service) firms. (GUNJ/KNN)