November YoY growth in bank credit to MSEs declines marginally from October YoY, shows RBI data

By: |
January 21, 2021 2:54 PM

Credit and Finance for MSMEs: Gross bank credit growth for MSEs in the services sector continued to scale north. From 10.2 per cent YoY growth in September and 10 per cent in October, services MSEs saw deployment up by 9.1 per cent in November worth Rs 7.57 lakh crore from Rs 6.94 lakh crore in November 2019.

As of March 27, 2020, bank credit to MSEs stood at Rs 11.49 lakh crore.

Credit and Finance for MSMEs: Year-on-year (YoY) growth in gross bank credit to micro and small enterprises (MSEs) in November 2020 has declined marginally from October YoY growth. From Rs 10.57 lakh crore in November last year, the deployment increased 6.1 per cent to Rs 11.22 lakh crore as of November 20, 2020, according to the latest data released by the Reserve Bank of India (RBI) in its January 2021 bulletin. However, the November YoY growth was down from 6.8 growth witnessed in October YoY credit deployment. From Rs 10.53 lakh crore in October 2019, the deployment in October 2020 was up to Rs 11.25 lakh crore. On the other hand, the November credit growth remained contracted by minus 2.4 per cent in the financial year 2020-21 so far, up from minus 2.1 per cent in October. As of March 27, 2020, bank credit to MSEs stood at Rs 11.49 lakh crore.

Along with overall growth in November, gross bank credit deployment to MSEs in the manufacturing sector continued to post positive growth after being in red from April till September in the financial year. The outstanding as of November 20, 2020, for manufacturing MSEs was Rs 3.64 lakh crore, up 0.5 per cent from Rs 3.62 lakh crore as of November 22, 2019. The October YoY growth stood at 0.7 per cent after contracting by minus 2.2 per cent, minus 3.4 per cent, minus 3.7 per cent, minus 1.9 per cent, minus 1.2 per cent, and minus 0.1 per cent during April, May, June, July, August, and September, respectively. Nonetheless, the growth in deployment in the FY21 so far remained negative at minus 4.5 per cent from Rs 3.81 lakh deployed in March.

Also read: ECLGS: Banks sanction 71% of Rs 3 lakh cr emergency credit scheme for MSMEs; disburse this much amount

Gross bank credit growth for MSEs in the services sector continued to scale north. From 10.2 per cent YoY growth in September and 10 per cent in October, services MSEs saw deployment up by 9.1 per cent in November worth Rs 7.57 lakh crore from Rs 6.94 lakh crore in November 2019. However, the growth in FY21 till November remained negative at minus 1.3 per cent from Rs 7.67 lakh crore in March 2020. The contraction in the FY till October stood at minus 0.5 per cent and 0.2 per cent till September.

Meanwhile, 90,57,300 MSME loans were sanctioned Rs 2,14,083 crore as of January 8, 2021, by banks and NBFCs under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS). Out of that, Rs 1,65,886 crore was disbursed to 42,46,831 loans, according to the Finance Ministry data. This was up from 80,93,491 loans involving Rs 2,05,563 crore sanctioned as of December 4, 2020 while 40,49,489 loans were disbursed involving Rs 1,58,626 crore.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1OYO vs ZO Rooms: Zostel says it won 3-year legal battle over alleged agreement breach; OYO refutes
2PMMY: PM Modi’s Mudra loan scheme disbursed 94% of sanctioned amount to micro, small businesses
3Amazon onboards 50,000 small sellers under ‘Local Shops’ programme for shopkeepers in less than a year