MSME lending: Maharashtra ranking plunges to 9 in FY19

Worries over the asset quality have led to Maharashtra slipping to the ninth rank for small businesses lending in FY19, from the number four slot in the previous year. 

Gujarat continues to top the list of states on the ranking on overall credit lending opportunity since the past four year, according to the data from state-run financier Sidbi and credit information company Transunion Cibil. 

Maharashtra, among the most industrialised states, was ranked No 1 in FY16, but slipped .. For Maharashtra, the deterioration during the period from FY16 to FY19 was primarily due to a reduction in market growth. Bad loans have also increased over the years," the study said. 

The state, which is headed for elections soon, is ranked top on market size, credit outstanding, total accounts and the number of borrowers, when it comes to serving the micro, small and medium enterprises having a credit exposure of less than Rs 50 crore.