Mumbai, April 8 (KNN) Bank lendings to the micro, small and medium (MSME) sector is much more safer than large corporates owing to a lower NPA rate of 12.5 per cent which is better than 19.7 per cent NPA rate constituting of the large companies. 

MSMEs have often pointed out the uncooperative attitude of banks towards the unorganised sector when it comes it lending, but the segment it has turned out to be a better bet for lending than large corporates, revealed Infomerics Valuation and Rating in a report titled MSMEs: Changing Landscape.

One of the key findings of the report is the huge addressable credit gap faced by MSME segment in India which is Rs. 25.8 trillion & growing 37 per cent CAGR. 

The credit rating company also highlighted on how traditional banks cover hardly 15 per cent of the total MSMEs in India keeping a large section out of the purview of banking network in the country. 

As of January 2020, a total lending of Rs 64.45 lakh crore was released to businesses out of which Rs 17.75 lakh crore was accounted to MSMEs.

Contributing 30 per cent to national GDP and 45.9 per cent to total exports, the Deployment of Gross Bank Credit to MSMEs and outstanding was Rs 4,47,566 crore as on 31st December, 2021. (KNN Bureau)\