MSME loan growth in FY22 increases 36% above pre-pandemic level: Report
Mumbai, June 25 (KNN) As compared to the pre-covid level in March 2020, the loan portfolio outstanding of micro, small and medium enterprises (MSMEs) increased to Rs 22.7 lakh crore, a jump of 36 per cent.
It rose by 18 per cent over March 2021, as per a study by CRIF High Mark, a credit information bureau.
As of March 2022, there were 137.4 lakh active loans for the MSME sector, an increase of 7 per cent from March 2021 and a 43 per cent increase from March 2020.
Portfolio at risk (PAR) for 91-180 days past due (DPD) improved from 1.6 per cent as of March 2021 to 1.3 per cent as of March 2022.
Commenting on the findings of the report, Navin Chandani, MD & CEO, CRIF High Mark, said, “The fact that total loans disbursed to MSMEs has increased by nearly 50 per cent compared to pre-pandemic levels is a clear indication that the lending community is actively supporting the resilience and regrowth of this sector.”
In view of market share by originations value in FY22, the report said that small borrower had the highest share at 28.5 per cent.
Mudra segment stood next in line at 26.2 per cent.
By originations volume, Mudra borrower segment had the biggest market share in FY22 at 57.7 per cent, followed by micro segment at 21.2 per cent.
As of total originations value in FY22 the top 3 states Maharashtra, Tamil Nadu, and Delhi, make up 64 per cent of it.
With an average ticket size of Rs 256.5 lakh in FY22 Maharashtra, Tamil Nadu, and Uttar Pradesh are the top 3 states, according to originations volume. (KNN Bureau)