Credit and finance for MSMEs: Credit to MSMEs by the public sector lender Union Bank of India increased 14.97 per cent for the quarter ended September 30, 2022, from the year-ago quarter, according to the Q2 results announced by the bank on Thursday. MSME loans during the September quarter increased to Rs 1,20,069 crore from Rs 1,04,436 crore during the September quarter in the previous fiscal. The quarter-on-quarter growth in loans to MSMEs increased by 4.70 per cent from Rs 1,14,674 crore credit given during Q1 FY23.
Announcing the quarterly results at a press conference, the bank said it has 126 MSME loan points and 105 MSME first branches across the country. Under the Union Guaranteed Emergency Credit Line initiative as per the ECLGS guidelines, the Union Bank had sanctioned 3,73,894 loans involving Rs 10,703 crores.
On the other hand, retail loans grew 14.45 per cent to Rs 1,46,715 crore during Q2 FY23 from Rs 1,28,190 crore. The bank reported a 21.07 per cent growth in its net profit to Rs 1,848 crore from Rs 1,526 crore during the said period. The overall business of the bank also jumped by 17.33 per cent wherein gross advances increased by 21.92 per cent to Rs 7,73,690 crore from Rs 6,34,583 crore.
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Union Bank had last week announced the launching of six Digital Banking Units (DBUs) which were among 75 DBUs in 75 districts of the country announced by Prime Minister Narendra Modi to deepen financial inclusion.
Meanwhile, credit to MSMEs from 40 scheduled commercial banks increased 24 per cent to Rs 18.15 lakh crore in August from Rs 14.64 lakh crore deployed in August 2021, showed the Reserve Bank of India’s data on monthly sectoral deployment. In July Rs 18.08 lakh crore was deployed while during April, May, and June in the current financial year, Rs 17.63 lakh crore, Rs 17.81 lakh crore, and Rs 17.93 lakh crore respectively were deployed to MSMEs.
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