Bank credit deployment to MSMEs decline in March 2016, shows RBI data

Mumbai, May 2 (KNN) The sectoral deployment of Bank Credit by major sectors decreased from the MSME sector from March 2015 to March 2016 while for the large industries it has increased in the same period, according to an RBI data.

The sectoral deployment of Gross Bank Credit by major sectors to the medium enterprises decreased from Rs 1245 billion March 20, 2015 to Rs 1148 billion on March 18, 2016; whereas that to Micro and Small Enterprises decreased from Rs 3800 billion in March 2015 to Rs 3715 billion in March 2016, RBI data on Deployment of Gross Bank Credit by Major Sectors showed.

Meanwhile, for the large enterprises the sectoral deployment of Gross Bank Credit increased from Rs 21531 billion in March 2015 to Rs 22444 billion in March 2016.

In March 20, 2015-March 21, 2014 the gross bank credit deployment was 9.1% which came to -2.3% in March 18, 2016-March 20, 2015 for MSEs while for Medium enterprises it came down from 0.4% to -7.8% in the same period.

Under priority sector also, the bank credit to the Micro & Small Enterprises came down from 13.1% in March 20, 2015-March 21, 2014 to 5.9% in March 18, 2016-March 20, 2015; while that to manufacturing came down from 9.1% to -2.3% during the same period. (KNN Bureau)