MSMEs sanctioned `37 L cr credit in FY22

Micro, small and medium enterprises have been sanctioned a total credit of Rs 37.29 lakh crore in FY22, growing 5 per cent over FY21 and 182 per cent over FY20.

The sanctioned amount in FY22 will go to 51.5 lakh accounts, representing a growth of 47 per cent over FY20, as per the data of CRIF High Mark. The sanctioned amount goes to the MSMEs in tranches.

As of March 2022, the MSME industry's portfolio outstanding stood at Rs 22.7 lakh crore, an increase of 36 per cent over March 2020 and an increase of 18 per cent over March 21. Also, there were 137.4 lakh active loans for the sector, an increase of 7 per cent from March 2021 and 43 per cent from March 2020.

The average ticket size saw a huge 92 per cent jump from Rs 37.7 lakh in FY20 to Rs 72.4 lakh in FY22.

In terms of value of disbursements small borrowers had the highest share followed by the Mudra segment, and in volume terms, the Mudra segment had the highest share followed by micro enterprises.

Private banks increased their share in MSME lending from 33.6 per cent in FY20 to 69.8 per cent in FY22. In volume terms, their share moved up to 33.5 per cent. The higher share in value terms is attributable to increase in average ticket size of private banks from Rs 47.1 lakh to Rs 150.5 lakh from FY20 to FY22. Public sector banks and NBFCs saw a decline in market share during this period.

The top 10 states accounted for 90 per cent of originations value in FY22. The top three states Maharashtra, Tamil Nadu and Delhi, make up 64 per cent of the total originations value in FY22. In originations volume, Maharashtra, TN, and UP are the top 3 states. Maharashtra has the largest MSME loan portfolio.