Ahmedabad, Dec 29 (KNN) The Micro, Small and Medium Enterprises (MSME) advances went up by Rs 10,956 crore which is 9 per cent from Rs 1.28 lakh crore in second quarter of 2019-20 to Rs 1.39 lakh crore in the corresponding period of 2020-21, said latest report by State Level Bankers’ Committee (SLBC) – Gujarat.

“MSMEs in the manufacturing sector have taken advantage of the Emergency Credit Line Guarantee Scheme, announced by the government. In Gujarat, nearly Rs 9,941 crore worth of disbursement took place to the MSMEs under this scheme during the said quarter. Most companies availed loans to fulfil working capital requirements,” Explained, MM Bansal, convener, SLBC – Gujarat.

According to the said report, Agriculture advances also grew by Rs 3,556 crore (4 per cent) year on year from Rs 89,295 crore to Rs 92,851 crore during the same period.

“Agri loans were availed on the other hand to fulfil expenditure requirements during the Rabi season. A number of farmers had availed loans for seasonal crops such as potato, cotton and even pulses,” Bansal added.

The quarter also saw a decline in bad loans, however, that was no reflection of any improvement in either the agriculture sector or even the MSMEs.

As per the report, MSME NPAs declined marginally by 1.25 per cent year-on-year, from Rs 10,290 crore to Rs 10,161 crore.