The Emergency Credit Line Guarantee Scheme (ECLGS) has helped revive credit growth to the MSME sector that was hit hard due to the pandemic.
Loans amounting to Rs 3.32 trillion were sanctioned under the scheme, and till April 30, 2022, Rs 2.54 trillion had been disbursed.
Private sector banks took the lead in disbursal.
While the gross non-performing assets ratio in the MSME sector has moderated to 9.3% in March 2022 from 11.9% in June 2021, stress in the sector remains.