Pvt banks take a lead in MSME loans: Report

New Delhi: Share of private banks as lenders in the Micro, Small and Medium Enterprises (MSME) segment has significantly increased in the last five years, according to a report published. As per the report, private banks dominate the portfolio outstanding for MSME loans with a share of 41.7 percent, while public-sector banks dominate active loans with a share of 39.7 percent as of March 2021.

In a report namely How India Lends 2021, by CRIF High Mark, a credit bureau entity, it was recorded that overall commercial loans witnessed 17.6 percent Year-on-Year growth as of March 2021 in terms of active loans and 2.3 percent by portfolio outstanding.

MSME Loans, with Entity level Credit Exposure upto Rs150 crores, has reported of market share by volume of 85 percent in March 2021. The report was released on the overall lending data that highlights key insights into retail, microfinance and commercial lending in India over the last five years i.e., Financial Year 2017 to Financial Year 2021, to show historical trends inlending.

It further States, that a 15 percent growth in share, by value, of MSMEs in overall commercial loans has been noticed from 16.2 per cent in FY17 to 24.6 percent in FY21. The report records almost two times more growth in share by volume of micro enterprises from FY17 to FY21. Similarly, there is a 33 percent growth in share by value and 47 percent growth in share by volume of Micro Enterprises among MSMEs from FY17 to FY21.

Navin Chandani, MD and CEO, CRIF High Mark, said: "Our report, How India Lends - FY21, is an attempt tohighlight the credit trends in India, from FY17 to FY21.Lending Institutions and the policymakers could benefitfrom the report and collaborate to promote a favorablelending environment. As development of credit spurseconomic growth, we are committed to study andpublish reports that will benefit the lending ecosystem."