India’s MSME loan portfolio jumps 17%

The total MSME loans originated or sanctioned in FY24 were 2.74 crore involving Rs 54.2 lakh crore, growing by 19.3 per cent in volume and 5.4 per cent in amount. 

India’s MSME loan portfolio grew by 17.8 per cent to Rs 64.1 lakh crore as of March 2024 from the year-ago period, said credit bureau CRIF High Mark in the fourth edition of its How India Lends report on Thursday. MSME loans included loans to entities with aggregate credit exposure of up to Rs 50 crore and self-employed individuals. 

Loans to self-employed individuals grew by a healthy 28.9 per cent to Rs 35.7 lakh crore in comparison to a 6.6 per cent growth to Rs 28.4 lakh crore in loans to MSME entities. 

The total MSME loans originated or sanctioned in FY24 were 2.74 crore involving Rs 54.2 lakh crore, growing by 19.3 per cent in volume and 5.4 per cent in amount. 

Entity MSMEs witnessed 3.1 per cent year-on-year (YoY) growth in originations value and 18.9 per cent YoY growth in originations volume in FY24. On the other hand, individual MSMEs saw 12.6 per cent YoY growth in originations value a 19.4 per cent growth in originations volume in FY24. 

In terms of portfolio quality, individual MSMEs witnessed substantial improvement in delinquency as PAR 31-90 (portfolio at risk by 31-90 days) improved to 2.7 per cent as of March 2024 vis-a-vis 3 per cent as of March 2023. Likewise, PAR 91-180, PAR 181-360 and PAR 360+ improved to 1.1 per cent, 0.7 per cent, and 7.3 per cent respectively as of March 2024.

In contrast, the entity MSME segment saw deterioration in PAR 31-90 to 2.5 per cent and in PAR 91-180 to 1.1 per cent as of March 2024 vis-a-vis 2.1 per cent and 1 per cent respectively as of March 2023. 

Microfinance loan portfolio in FY24 also grew by 26.8 per cent to Rs 4.4 lakh crore while origination volume grew by 6 per cent to 8.35 crore involving Rs 3.8 lakh crore, growing by 19 per cent.

Credit -Financial Express