MSME loans dip 7% since March as bankers err on side of caution

MUMBAI: Bank loans to MSME businesses shrank more than 7% in April and May from pre-Covid-19 levels, underscoring increased risk perception among bankers to lend to smaller businesses as the shutdown increased the likelihood of defaults. Experts, however, expect a rebound in the second quarter of the fiscal. The Indian banking sector's exposure to the MSME sector contracted by