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Banks deployed Rs 24.6 lakh crore credit to MSMEs in March: RBI data

Deployment of gross bank credit to micro, small and medium enterprises (MSMEs) under priority sector lending during March this year stood at Rs 24.67 lakh crore, according to the latest data on sectoral deployment by the Reserve Bank of India (RBI). The credit deployment in March grew by 19.2 per cent from Rs 20.69 lakh crore deployed in March 2023.

Total bank credit to MSMEs under priority sector lending in March was 15 per cent of Rs 164.11 lakh crore in India’s non-food credit during the month.

Segment-wise, deployment to micro and small enterprises (MSEs) grew 20.1 per cent to Rs 19.76 lakh crore in March 2024 from Rs 16.45 lakh crore during the year-ago period. Likewise, credit to medium-sized businesses jumped 15.8 per cent to Rs 4.90 lakh crore from Rs 4.23 lakh crore during the period. 

In comparison to the 12.7 per cent and 12.4 per cent year-on-year (YoY) growth in MSME credit by banks as of March 2022 and March 2023, the credit growth by NBFCs to MSMEs stood at 21.2 per cent and 42.4 per cent respectively, according to the report. 

As of March 2023, services MSMEs had a 66.6 per cent share in NBFC credit to MSMEs in comparison to the 33.4 per cent of MSMEs in industries.