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 IPO News Kalana Ispat IPO: Strong Demand, Latest GMP, and Subscription Status Msme News ₹1 Lakh Crore Industrial Investment, ₹180 Crore Incentives: Punjab Driving MSME Growth; Finance Minister Harpal Singh Cheema at Bharat Manufacturing & Export Summit – Ludhiana Msme News LLP vs Pvt Ltd – What’s the Difference? Msme News Indian MSMEs Show Remarkable Resilience: Exports Triple in 5 Years IPO News NTPC Green Energy IPO: Special Benefits for NTPC Shareholders and Employees Msme News Assistance for Digitization of Business Processes and Adoption of eCommerce Msme News Enhanced Credit Guarantee to Benefit 2.7 Million Women-Led MSMEs: Manjhi Msme News Goa’s First MSME Maritime Cluster Receives Fresh Momentum with New Tenders Msme News Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Patent Registration Msme News 53% of Citizens Face Financial Scams in Last 5 Years, MSME Ministry Issues Urgent Warning
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