Credit deployment to MSME declines in March 2016-17 as compared to previous year, shows RBI Data

Mumbai, May 2 (KNN) The credit deployment to micro and small enterprises (MSEs) declined by -0.4 per cent in March 2016-17 period as compared to -2.5 per cent in March 2015-16.

While credit to the medium enterprises sector dropped by -8.7 per cent in March 2016-17 period as compared to -7.8 per cent in March 2015-16, according to RBI data.

Looking at the industry as a whole – micro, small, medium and large sector – the credit deployment during March 2016-17 fell by -1.9 per cent which was 2.7 per cent during March 2015-16.

Meanwhile, the credit deployment to the Services Sector was 19.5 per cent during March 2016-17 showing a positive growth from 9.1per cent during March 2015-16.

“Credit to industry contracted by 1.9 per cent in March 2017 in contrast with an increase of 2.7 per cent in March 2016. Credit growth to major sub-sectors such as ‘infrastructure’, ‘food processing’, ‘basic metal & metal products’ and ‘textiles’ decelerated/contracted.

However, credit growth to ‘petroleum, coal products & nuclear fuels’, ‘wood & wood products’, ‘rubber, plastic & their products’, ‘vehicles, vehicle parts & transport equipment’ and ‘construction’ accelerated,” RBI said in its Sectoral Deployment of Bank Credit – March 2017 Report.

Under Priority Sector Lending, the credit deployment to micro and small enterprises (MSEs) showed a growth of 6.5 per cent during March 2016-17 as compared to 5.9 per cent growth in March 2015-16.

The credit to manufacturing sector, under Priority Sector Lending, slightly plunged by -0.1 per cent during March 2016-17 as compared to -2.3 per cent during March 2015-16. (KNN Bureau)