Aggregate bank credit deployment to the MSME sector in November 2024 grew by 13.5 percent from the year-ago period, the latest data on sectoral deployment of bank credit by the Reserve Bank of India (RBI) showed. Banks deployed Rs 26.48 lakh crore in November which was Rs 23.32 lakh crore in November 2023.

Credit to MSMEs in November accounted for 15.5 percent of scheduled commercial banks’ non-food credit of Rs 170 lakh crore.

Within the MSME sector, micro and small enterprises (MSEs) earned Rs 20.92 lakh crore in November, up 11.7% from Rs 18.72 lakh crore in November 2023.

Banks’ bad loan ratio is at a 13-year low on high recoveries.

SMFG India Credit receives Rs 3,000 crore from Japanese parent.

Credit card spending fell 16 percent in November as festive demand cooled.

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Similarly, loans to medium enterprises rose 20.7% to Rs 5.56 lakh crore in November 2023 as against Rs 4.60 lakh crore in November 2023.

Credit to MSMEs is expected to increase with the central bank’s upcoming launch of the Unified Lending Interface (ULI), modeled after the UPI-based payment infrastructure.

Currently under pilot run, the platform, which will enable bank credit based on alternative data, has already disbursed 6 lakh loans worth Rs 27,000 crore under its ongoing pilot till December 6, 2024, on banking in India. According to a report by the Central Bank.

Of the loans disbursed by ULI, 1.60 lakh loans were disbursed to MSMEs worth Rs 14,500 crore.

Total outstanding bank credit to the MSME sector at the end of March 2024 was Rs 27.25 lakh crore, which is 19.3 percent of total adjusted net bank credit (ANBC).

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