New Delhi, Mar 2 (KNN) While MSMEs are crying  against newly raised barriers to credit, State Bank of India, the largest Indian Bank has reported a nearly 60% yearly increase in credit release to micro and small enterprises as in December, 2015.

In a report submitted to RBI on the MSME credit, SBI reported a 60% increase in credit to micro and small enterprises of which nearly 50% has gone to the ‘micro’ enterprises, remaining to the small sector.

Among the prominent Banks, Bank of India has shown a credit increase of 41%, Bank of Maharashtra an increase of 141% and United Commercial Bank more than 125% increase in MSE credit, during last one year.

At the same time all Banks in the region has shown a  nearly 10% decrease in credit to ‘Medium’ enterprises, which may  mean that all Banks are busy in loaning under ‘MUDRA’, the high pitch financial inclusion campaign of  Mr. Modi.

According to an internal report prepared by RBI, to which  KNN got access, Punjab National Bank, one of the largest banks in the  northern region has shown a 3% decrease  in credit  release to MSEs of Delhi region, during the year ending 2015.

OBC another important Bank has shown a decrease of 11% in the credit to the sector. Federal Bank another prominent Bank has shrunk the credit flow to the extent of 35%.

The data shows quite a motley trend in the performance of the Public Sector Banks, albeit all are under the full control of Finance Ministry. According to one expert in MSME affairs, this is another example of one hand of the Government does not know what the other is doing.

Also all the lagging Banks have also shown lower share of the credit going to the micro sector, which may  indicate their poor performance under Prime Minister’s  Mudra Yojana, the flagship programme of the Government to support “Stand Up India’.

Commenting on the scenario, Anil Bhardwaj, Secretary, General FISME said, someone in the Department of Financial Services should find time to assess what is happening in their own backyards.

Expressing surprise on the spectacular performance of SBI in releasing credit to micro and small enterprises in Delhi region, one leading MSME entrepreneur doubted the figures. When at the all India level, State Bank is showing a single digit growth in credit to MSEs how it can be so high in Delhi region, he said. (KNN/ DB)