‘FY22 MSME loan growth 36% above pre-Covid level’

The loan portfolio outstanding of micro, small and medium enterprises (MSMEs) rose to Rs 22.7 lakh crore, an increase of 36 per cent over the pre-pandemic level in March 2020 and 18 per cent over March 2021.

According to CRIF High Mark, a credit information bureau, as of March 2022, there were 137.4 lakh active loans for the MSME sector, an increase of 7 per cent from March 2021 and a 43 per cent increase from March 2020. Portfolio at risk (PAR) for 91-180 days past due (DPD) improved from 1.6 per cent as of March 2021 to 1.3 per cent as of March 2022.

It said PAR for 181-360 days held steady at 0.3 per cent. As of March 2022, PAR for 360 days past due was at 2.2 per cent, improving from 2.5 percent as of March 2021, it said.

Navin Chandani, MD & CEO, CRIF High Mark, said, “The fact that total loans disbursed to MSMEs has increased by nearly 50 per cent compared to pre-pandemic levels is a clear indication that the lending community is actively supporting the resilience and regrowth of this sector. We will continue to publish rich data & insights to benefit the lending ecosystem for small businesses.”

🚨 Limited Time Offer | Express Premium with ad-lite for just Rs 2/ day 👉🏽 Click here to subscribe 🚨

At 51.5 lakh accounts, total loans disbursed in FY22 represented a 47 per cent increase over FY20. From Rs 37.7 lakh in FY20 to Rs 72.4 lakh in FY 21–22, the average ticket size of MSME loans increased by 92 per cent, it said.

Crif High Mark said the small borrower segment had the highest market share by originations value in FY22 at 28.5 per cent, followed by Mudra segment at 26.2 per cent. By originations volume, Mudra borrower segment had the biggest market share in FY22 at 57.7 per cent, followed by micro segment at 21.2 per cent.

The market share by originations value of private banks significantly increased from 33.6 per cent in FY20 to 69.8 per cent in FY22, the bureau said. Their share climbed from 26.9 per cent in FY20 to 33.5 per cent in FY22 by originations volume. This is attributable to the increase in average ticket size of private banks from Rs 47.1 lakh to Rs 150.5 lakh from FY20 to FY22. Public sector banks and NBFCs showed a decline in market share during this period.

The average ticket size for PSU banks in FY22 was Rs 28.6 lakh, NBFCs Rs 32.1 lakh, foreign banks Rs 502.6 lakh and other lenders Rs 26.1 lakh, it said.

Geographically, the top 10 States account for 90 per cent of originations value in FY22. The top 3 states Maharashtra, Tamil Nadu, and Delhi, make up 64 per cent of the total originations value in FY22.

According to originations volume, Maharashtra, Tamil Nadu, and Uttar Pradesh are the top 3 states and with an average ticket size of Rs 256.5 lakh in FY22. Maharashtra has the largest MSME loan portfolio.

Source link

The Press Walla

The Press Walla is the India's fastest growing youth online magazine which covers all latest trending stories from entrepreneurship, business, entertainment etc

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button