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Bank credit to micro & small enterprises up nearly 5% YoY
March 02, 2022
The year-on-year growth in deployment of gross bank credit to micro and small enterprises during last month remained positive as compared to the last year, the latest data on sectoral deployment of bank credit by the RBI showed. Banks deployed ₹12.44 lakh crore to MSEs in January 2022. The growth had come amid the third wave of the pandemic, indicating negligible impact on businesses.
Bank credit growth to MSEs had turned positive in December 2021 after being in red for three straight months. YoY growth in December stood at 9.1% to ₹11.48 lakh crore deployed during the year-ago period in comparison to minus 2.2% minus 0.5 percent, and minus 2.6 percent YoY growth during September, October, and November respectively last year.
Medium enterprises also reported a growth in credit during January in comparison to 50.4% growth in December. Banks had deployed ₹2.75 lakh crore to medium businesses in January vis-à-vis ₹1.93 lakh crore in January 2021. The highest YoY growth rate during the current financial year was recorded at 70.9 percent in July.
The total bank credit deployed to the overall MSME sector in January was ₹15,19,495 crore 13.11 percent of India’s total gross bank credit of ₹115.82 lakh crore in January, up from 13 percent in December and 12.01 percent in November.
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