MSMEs debt higher than big companies; banks flag stress sign

Mumbai, 12 Jan (KNN) After the deadline for implementation of the latest RBI restructuring plan which ended in December, banks are monitoring their MSME portfolio to identify signs of stress. 

Owing to the economic disability, MSMEs debt has increased on a higher level as compared to large companies. 

As per RBI data, MSME loans worth INR 51,467 crore were restructured in May 2021 followed  by January 2019, February and August 2020.

For restructuring, MSME loans worth INR 1.16 lakh crore or about 7.67% of the eligible loans, are at various stages.

On this the bankers pointed out that there were already signs of stress with some loans overdue for more than 30 days but still not slipped into NPAs.

They have said that the incremental stress will come from MSMEs as they were drastically hit by the pandemic.