TransUnion Cibil has said loans worth Rs 2,32,000 crore of micro, small and medium enterprises are at a higher risk of becoming non-performing assets (NPAs).
The NPA rate for MSMEs has increased continuously over last few years to reach 12.6 per cent as of December 2019, Cibil said in a report. “The number of MSMEs falling in the highest risk bracket of CMR-7 to CMR-10 has outstanding credit balances of Rs 232,000 crore, which is at a higher risk of going into NPA,” Cibil said.
Of these, the micro vertical (aggregate credit exposure of less than Rs 10 lakh) in the highest risk bracket of CMR-7 to CMR-10 comprises credit outstanding of Rs 13,600 crore. TransUnion CIBIL MD and CEO Rajesh Kumar said, “The pandemic poses new challenges to businesses, especially for micro enterprises … We are committed to working closely with banks and credit institutions to support them on adjusting their MSME lending policy decisions.”
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