“FY22 MSME loan growth of 36% above pre-Covid level”
The outstanding loan portfolio of micro, small and medium enterprises (MSMEs) increased to Rs 22.7 lakh crore, an increase of 36% from the pre-pandemic level in March 2020 and 18% from March 2021.
According to CRIF High Mark, a credit bureau, in March 2022 there were 137.4 lakh active loans for the MSME sector, an increase of 7% from March 2021 and an increase of 43 % compared to March 2020. Portfolio at risk (PAR) for 91-180 day late payment (DPD) decreased from 1.6% in March 2021 to 1.3% in March 2022.
He said the PAR for 181 to 360 days remained stable at 0.3%. In March 2022, the PAR for 360 days late was 2.2%, compared to 2.5% in March 2021, he said.
Navin Chandani, MD and CEO, CRIF High Mark, said, “The fact that total loans disbursed to MSMEs has increased by nearly 50% from pre-pandemic levels is a clear indication that the lending community is actively supporting resilience and regrowth. of this sector. We will continue to release rich data and insights to benefit the small business lending ecosystem. »
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At 51.5 lakh accounts, total loans disbursed in FY22 represented an increase of 47% over FY20. From Rs 37.7 lakh in FY20 to Rs 72 .4 lakh in FY21-22, the average size of loans to MSMEs increased by 92%, he said.
Crif High Mark said the small borrower segment had the highest market share by original value in FY22 at 28.5%, followed by the Mudra segment at 26.2%. By origination volume, the Mudra borrower segment had the largest market share in FY22 at 57.7%, followed by the micro segment at 21.2%.
Private banks’ market share by original value increased significantly from 33.6% in FY20 to 69.8% in FY22, the bureau said. Their share increased from 26.9% in FY20 to 33.5% in FY22 in terms of originating volume. This is attributable to the increase in the average note size of private banks from Rs 47.1 lakh to Rs 150.5 lakh from FY20 to FY22. Public sector banks and NBFCs experienced a decline in market share during this period.
The average note size for PSU banks in FY22 was Rs 28.6 lakh, NBFCs Rs 32.1 lakh, foreign banks Rs 502.6 lakh and other lenders Rs 26. 1 lakh, he said.
Geographically, the top 10 states account for 90% of the value of creations in FY22. The top 3 states of Maharashtra, Tamil Nadu and Delhi account for 64% of the total value of creations in FY22 22.
According to departure volume, Maharashtra, Tamil Nadu and Uttar Pradesh are the top 3 states and with an average ticket size of Rs 256.5 lakh in FY22. Maharashtra has the largest wallet loans to MSMEs.