MSME Priority Lending Surges to ₹26 Lakh Crore in September: RBI Data November 1, 2024 MSME Sampark Msme News 0 According to the latest data from the Reserve Bank of India (RBI), gross bank credit to micro, small, and medium enterprises (MSMEs) under priority lending norms increased by 14.6%, reaching ₹26.01 lakh crore in September 2024, compared to ₹22.68 lakh crore during the same month last year. This substantial growth reflects the priority sector’s integral role in India’s economic framework, with MSME credit constituting 15.2% of India’s non-food credit of ₹171 lakh crore for the month. Breaking down the figures, credit to micro and small enterprises (MSEs) grew by 13.1%, from ₹18.18 lakh crore in September FY23 to ₹20.57 lakh crore in September FY24. Meanwhile, medium enterprise lending surged by 20.8%, rising from ₹4.49 lakh crore to ₹5.43 lakh crore over the same period. This upward trend aligns with the RBI’s continued focus on tailored support for MSMEs. In a recent address, RBI Governor Shaktikanta Das urged financial institutions to create financial products specifically suited to MSMEs, citing the need for flexible credit options, improved working capital access, and financial support that aligns with MSMEs’ unique cash flow cycles and growth stages. Such support, the governor noted, would help MSMEs expand, boost productivity, and generate employment. Despite the positive trajectory, credit growth to MSMEs may moderate in FY24. Ratings agency Crisil projected around 15% growth in MSME credit for the current fiscal year, down from approximately 19% in FY23. Crisil highlighted key factors contributing to this growth, including the sector’s role in downstream capital expenditure, participation in the Atmanirbhar Bharat initiative, and benefits from the Production-Linked Incentive (PLI) scheme. Additionally, sector formalization and enhancements in digital public infrastructure are expanding the addressable base for banks. Disclaimer: The information provided here is for informational purposes only and does not constitute financial advice. Readers are advised to consult with financial experts before making any investment or business decisions based on this data. Popular Articles Msme News NAFCUB Urges UCBs to Boost MSME Lending, Focus on Economic Growth Msme News MSME Sampark x Build Bharat Expo 2025 – Transforming MSMEs, Shaping India’s Future Msme News Six Pillars to Strengthen MSMEs for a Self-Reliant Future: MSME Minister Jitan Ram Manjhi on World MSME Day 2025 Msme News Government Extends Interest Equalisation Scheme for MSME Exporters Until December 2024 Msme News MSMEs Need to Adopt Technology and Focus on Skill Development: Minister Jitan Ram Manjhi Msme News Bridging Communication Gap: Atul Kumar, CEO at PhysicsWallah Msme News Odisha’s MSME Sector Embraces Digital Transformation through CII’s Digital Saksham Program Msme News The Digital Pathway to Growth for MSMEs: Unlocking Their Potential in India’s Economy Msme News Government Implements Various Schemes to Boost MSME Sector, Says FM Sitharaman Msme News Haryana Government Brings MSME Services Under Right to Service Act for Timely Delivery
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