New Delhi, Jan 9 (KNN) The overall Non-Performing Asset (NPAs) rate of commercial lending was at 17.5% in September,  2018 versus 15.5% in September, 2017, reveals the recently released TransUnion CIBIL- SIDBI Micro, Small and Medium Enterprises (MSME) Pulse Report.

Diving deeper into the respective segments reveals that the NPA rates in the Micro and SME segments have reduced from 8.7% (September, 2017) to 8.5% (September, 2018) and 11.4% (September, 2017) to 11.3% (September, 2018) respectively, over the last one year.

The growth rate in credit exposure is higher as compared to the growth in gross NPA amount in the Micro/SME segment, contributing to the reduced gross NPA rate, according to the report.

The pool of gross NPA amount has increased by 75% in the large segment in the two year period from September, 2016 – September, 2018.

Within the Commercial MSME segment, the NPA rates are higher for larger exposures, although Very Small segment also has shown higher NPAs.

The NPA rate for MSME loans taken in individual capacity are significantly lower compared to MSME loans to entities.

The NPA rate of individual loans is in the range of 2% - 2.3% compared to 8% - 14% for loans to Commercial entities.

The latest report also noted that the default rates in borrowers taking multiple loans from lenders within a period of 60 days have increased from 2.5% to 4.4% during September 2015 to September 2018 period.