Commercial credit portfolio of Indian MSMEs grew 11% on-year in Jul-Sep: SIDBI, TransUnion Cibil report
commercial credit portfolio of Indian micro small and medium enterprises grew 11% on-year in Jul-Sep, as accelerating economic activity boosted demand for commercial loans, TransUnion Cibil and the Small Industries Development Bank of India said.
“Credit exposure stood at Rs 28.2 lakh crores at end of the quarter ending September 2023...supply volumes grew by 20% year-over-year (YoY) in the July-September 2023 quarter, indicating improved lender confidence,” TransUnion Cibil and SIDBI’s analysts said in a report on 80 lakh MSMEs.
Commercial loans grew 29% YoY in Jul-Sep, while the total value of new credit for micro small and MSMEs was Rs. 2.43 lakh crores with small enterprises having the largest share of 42%.
The fact that lending to the MSME sector sustained in April-September 2023 despite the conclusion of the Centre’s COVID-era Emergency Credit Line Guarantee Scheme (ECLGS) scheme, underscored the growth momentum of the sector, Sivasubramanian Ramann, Chairman and Managing Director, SIDBI, said.
Ramann flagged the role of technology in propelling loans to the MSME sector, highlighting wider adoption of online loan applications, financial management tools, digital payment platforms along with utilization of robust analytics.
“SIDBI is working on the above lines and is leveraging technology, utilising the Digital Public Infrastructure of the Government of India, to augment credit flow to the sector with faster turnaround,” he said.
During the period under review, overall balance-level delinquencies, gauged
