3 Yrs Credit to MSEs falls from 5.9% to 4.5 : Article published by Times of India
Dear all,
Your association SIMA is forwarding herewith an article published in Times of India, Mumbai Edition on 03/12/2018 heading “In 3 yrs, credit to MSEs falls from 5.9% to 4.5%”.
Times of India 03/12/2018
In 3 yrs, credit to MSEs falls from 5.9% to 4.5%
(Not Yet Clear If Liquidity The Biggest Problem)
The share of bank credit to micro and small enterprises (MSEs) has been shrinking for three years —from 5.9% in October 2015 to 4.5% in October 2018, data from the RBI shows.
While it is clear the sector is facing problems due to the double whammy of demonetisation and GST, it’s unclear whether MSEs are hit by liquidity issues or whether banks do not find them credit-worthy.
In the first seven months of the current fiscal (up to October 26), outstanding loans to micro and small enterprises have come down by Rs 8,800 crore—to Rs 3.64 lakh crore.
The reason why this decline has not been reflected in the credit to industry numbers is that banks have lent an additional Rs 5,100 crore to large businesses, which owe Rs 22.27 lakh crore— a big chunk of the Rs 26.96 lakh crore credit to the industry.
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This is for your kind information,
Thanking you,
With regards,
For Silvassa Industries & Manufacturers Association,
Narendra Trivedi,
Secretary
