Keen to soften the blow for the micro, small and medium enterprises (MSME) sector that was hit by the double whammy of demonetisation and the GST, the Centre has asked chiefs of public sector banks (PSBs) to undertake an “in-depth analysis of the progress made and issues in availability of credit still faced by MSMEs”. The state-run banks have to ensure that MSMEs need not “suffer for want of credit”, the finance ministry said on Thursday.
Latest RBI data showed credit to industry went up by just 6.9 per cent year-on-year as of April 26, while overall non-food credit growth was as much as 11.9 per cent. Importantly, loans to industry was mostly cornered by large players and growth in credit to MSMEs was just 1 per cent and 3.5 per cent, respectively.
While analysing credit flow to MSMEs, the nodal general manager of the PSB concerned needs to collect information on MSMEs who are taking credit from the bank; MSME accounts that have turned bad; MSME accounts where restructuring/resolution has been done; details of new MSMEs covered during the campaign and details of MSMEs still uncovered. —FE