RBI reports 8.4% increase in bank credit to micro and small enterprises in February 2022

New Delhi, April 4 (KNN) In the month of February, bank credit to micro and small enterprises (MSEs) increased by 8.4 per cent to Rs 13.12 lakh crore from Rs 12.11 lakh crore, as per Reserve Bank of India’s (RBI) latest data. 

The overall bank credit deployed to the MSME sector in the country stood at Rs 16.10 lakh crore in February 2022 which is 13.8 per cent of India’s total gross bank credit of Rs 116.27 lakh crore that increased by 7.9 per cent from Rs 107.74 lakh crore in February 2021. 

Despite the third wave of the pandemic, the year-on-year (YoY) growth in credit deployment to MSEs has been positive since December 2021, said the central bank’s report. 

While December growth was at 9.1 per cent from the year-ago period, deployment in January was up by 4.8 per cent from January 2021. 

In deployment from September to November the YoY growth was negative.

During the year-ago period the Medium enterprises  reported a 43.3 per cent increase in bank credit to Rs 2.98 lakh crore in February from Rs 2.07 lakh crore.

Even though the highest growth rate during the financial year 2021-22 was recorded at 70.9 per cent in July, this was relatively higher than the 42.1 per cent growth in deployment in January. (KNN Bureau)