Banks deploy Rs 15.80 lakh crore credit to micro, small enterprises in April: RBI report
Credit and finance for MSMEs: Gross bank credit deployed to micro and small enterprises (MSEs) under priority sector lending in April 2023 grew by 12.5 per cent year-on-year (YoY) in comparison to 19.7 per cent YoY growth in April 2022, according to the latest monthly data on sectoral deployment of bank credit by the Reserve Bank of India (RBI). Bank credit of Rs 15.80 lakh crore was deployed to MSEs in April this year against Rs 14.04 lakh crore in April last year and Rs 15.70 lakh crore in March this year.
Credit to medium-sized enterprises also registered growth as banks deployed Rs 4.03 lakh crore in April this year, up by 12.2 per cent from Rs 3.59 lakh crore in April 2022. In March this year, Rs 3.99 lakh crore was deployed to medium enterprises.
Overall, bank credit to the MSME sector under priority loans in April 2023 stood at Rs 19.84 lakh crore – 14.3 per cent of Rs 138.36 lakh crore non-food bank credit deployed across sectors – with 12.4 per cent growth from Rs 17.64 lakh crore deployed in April 2022.
Also read: Bank credit to micro, small enterprises up 14% YoY in March: RBI data
With respect to other sectors eligible for priority sectors credit were agriculture and allied activities receiving Rs 16.82 lakh crore, housing receiving Rs 6.23 lakh crore, educational loans Rs 59,290 crore, renewable energy Rs 4,614 crore, social infrastructure Rs 2,494 crore, export credit Rs 13,675 crore, etc., in April 2023.
Meanwhile, bank credit to MSMEs during April-December in FY23 had increased by 14.2 per cent YoY from 11.7 per cent in the corresponding period of the previous year, according to the central bank’s FY23 annual report published recently.
2.13 crore MSMEs had raised Rs 21.5 lakh crore till December end in FY23 vis-a-vis 2.47 crore MSMEs which raised Rs 18.8 lakh crore till December FY22. Overall, Rs 20.1 lakh crore were deployed to 2.64 crore MSME accounts in the entire FY22 in comparison to Rs 17.8 lakh crore to 4.20 crore accounts in FY21.
According to the report, 45 per cent (Rs 9.78 lakh crore) of the total loan amount to MSMEs in FY23 (till December) was deployed to 1.93 crore micro units while 34 per cent (Rs 7.34 lakh crore) of the amount was deployed to 16.83 lakh small enterprises and only 20 per cent (Rs 4.37 lakh crore) was deployed to 3.20 lakh medium enterprises.