RBI predicts a post pandemic recovery for MSEs

New Delhi, June 6 (KNN) The latest data published by the Reserve Bank of India (RBI ) on sectoral deployment of bank credit indicates  a gradual recovery among Micro & Small Enterprises (MSEs) in the post pandemic times. The gross bank credit deployed to MSEs during the month of April 2022 has scaled up 19.7 per cent to Rs 14.08 lakh crore from Rs 11.77 lakh crore as compared to April 2021.

The year-on-year (YoY) growth during March stood at 10.6 per cent vis-a-vis 8.4 per cent in February and 4.8 per cent in January. Bank credit to MSEs included enterprises in manufacturing and services sector and priority sector lending (PSL) certificates.

The data shows a growth in the credit deployed to medium enterprises with a 65 per cent jump to Rs 3.54 lakh crore in April from Rs 2.15 lakh crore in April 2021. In comparison, March credit had registered 36.9 per cent growth to Rs 3.04 lakh crore from Rs 2.22 lakh crore in March 2021.

The overall credit given to the MSME sector in April was also higher at Rs 17.63 lakh crore from Rs 16.17 lakh crore deployed in March and Rs 16.10 lakh crore deployed in February.

In terms of gross bank credit share, April disbursements to MSMEs were 14.75 per cent of Rs 119.54 lakh crore gross credit deployed by banks across sectors vis-a-vis 13.6 per cent in March, 13.8 per cent in February and 13.11 per cent in January.  (KNN Bureau)