Deployment of gross bank credit to the MSME sector in November 2024 grew by 13.5 per cent from the year-ago period, showed the latest data on sectoral deployment of bank credit by the Reserve Bank of India (RBI). Banks deployed Rs 26.48 lakh crore in November compared to Rs 23.32 lakh crore deployed in November 2023.
Credit deployed to MSMEs in November was 15.5 per cent of Rs 170 lakh crore in non-food credit of scheduled commercial banks.
Within the MSME sector, micro and small enterprises (MSEs) secured Rs 20.92 lakh crore in November, up by 11.7 per cent from Rs 18.72 lakh crore in November 2023.
Similarly, credit to medium enterprises jumped by 20.7 per cent to Rs 5.56 lakh crore vis-a-vis Rs 4.60 lakh crore deployed in November 2023.
Credit to MSMEs is expected to go up with the upcoming launch of the unified lending interface (ULI) by the central bank on the lines of UPI-based payment infrastructure.
Currently under pilot run, the platform, which will enable bank credit based on alternate data, has already disbursed over 6 lakh loans amounting to Rs 27,000 crore under its ongoing pilot as of December 6, 2024, according to a report on banking in India by the central bank.
Out of the loans disbursed through ULI, 1.60 lakh loans amounting to Rs 14,500 crore were disbursed to MSMEs.
Total outstanding bank credit to the MSME sector at March-end 2024 stood at Rs 27.25 lakh crore, accounting for 19.3 per cent of the total adjusted net bank credit (ANBC).