MSME Credit Grows 19.3% In February Amid Continued Focus On Priority Sector Lending

ENA MSME 2024-03-29 15:18:51 New Delhi, Mar 29 (KNN) Credit deployment to micro, small and medium enterprises (MSMEs) under priority sector lending by scheduled commercial banks in India jumped 19.3 per cent year-on-year to Rs 24.42 lakh crore in February 2024, latest data from the Reserve Bank of India showed. The MSME credit outstanding, which accounts for 15.1 per cent of total non-food bank credit, was up from Rs 20.46 lakh crore in the same month last year. On a month-on-month basis, it rose 1.2 per cent from Rs 24.12 lakh crore in January 2024. Driving the annual growth was a 20 per cent rise in credit to micro and small enterprises to Rs 19.62 lakh crore from Rs 16.31 lakh crore a year ago. Credit to medium enterprises increased 15.8 per cent to Rs 4.80 lakh crore. Despite the steady MSME credit growth, a FICCI survey last October highlighted collateral requirements as a key impediment faced by small businesses in accessing finance. Only 610 SMEs were covered. The survey called for a shift towards cash-flow based lending using information utilities like account aggregators instead of over-reliance on physical asset collateral by banks. With geopolitical risks, rising interest rates and volatile commodity prices, Indian SMEs have turned to capital markets to supplement debt funding requirements. Between April 2023 and February 2024, 179 out of 345 companies raising equity capital through IPOs were SMEs garnering Rs 5,381 crore, showed the Finance Ministry's latest economic review. In comparison, 68 mainboard IPOs raised Rs 58,745 crore during this period. The IPO activity marks a jump from 71 SMEs raising Rs 979 crore in FY22 and 155 firms garnering Rs 2,225 crore in FY18. (KNN Bureau) 37215 https://knnindia.co.in/news/newsdetails/msme/msme-credit-grows-193-in-february-amid-continued-focus-on-priority-sector-lending 2024-03-29 15:18:51 knnindia.co.in MSME Credit Grows 19.3% In February Amid Continued Focus On Priority Sector Lending