Credit and Finance for MSMEs: Overall bank credit deployed to the entire MSME sector in June was Rs 17.93 lakh crore, marginally up from Rs 17.81 lakh crore deployed in May and Rs 17.63 lakh crore in April, showed RBI data.
As per the recently released RBI data on sectoral deployment of bank credit, bank credit and finance for Micro and Small Enterprises (MSEs) continued to grow year-on-year (YoY). It registered a 23.7% growth in June 2022 against a contraction of 0.6% in June 2021.
The gross bank credit provided to MSEs in June stood at Rs 14.29 lakh crore vis-a-vis Rs 11.55 lakh crore in June last year. The figure was around Rs 11.62 lakh crore in June 2020.
In May, the credit growth stood at 27%, with Rs 14.23 lakh crore provided to MSEs, up from Rs 11.20 lakh crore in May 2021. Similarly, a 19.7 % increase was recorded in April, with Rs 14.08 lakh crore deployed to MSEs compared to Rs 11.77 lakh crore in April 2021.
Generally, banks have reported healthy year-on-year credit growth of 60% to medium enterprises, with Rs 3.63 lakh crore redistributed in June this year from Rs 2.26 lakh crore in June 2021. For May 2022, the growth was higher at 64.8%, with Rs 3.57 lakh crore redistributed compared to Rs 2.16 lakh crore during the year-ago period.