As economic activity recovers, disbursements of MSME loans have risen by 43%, to Rs 3.25 trillion, in Q4FY22 as compared with the same period last year.
The average loan size has also risen across all segments, because of higher need for credit, easing of the interest rate cycle, and increased risk appetite of private banks, especially in the small and medium segments.
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Even the asset quality of MSME loans has improved as the NPA rate has dropped to 12.9% in the three months to March this year compared with 14.3% in the three months to September last year