Credit and financing for MSMEs: Bank credit to micro and small enterprises (MSEs) continued to improve in April 2022. Gross bank credit deployed to MSEs during the month jumped 19.7% to Rs 14.08 lakh crore from Rs 11, 77 lakh crore in April 2021, latest data from the Reserve Bank of India (RBI) on sectoral deployment of bank credit showed. Year-on-year (YoY) growth in March stood at 10.6% compared to 8.4% in February and 4.8% in January, indicating a gradual recovery of MSEs from the pandemic. Bank credit to MSEs included companies in the manufacturing and service sectors as well as Priority Sector Loan Certificates (PSL).
Growth in credit deployed to medium-sized enterprises also continued to increase with a jump of 65% to Rs 3.54 lakh crore in April from Rs 2.15 lakh crore in April 2021. In comparison, March credit had recorded a growth of 36.9% to Rs 3.04 lakh crore from Rs 2.22 lakh crore in March 2021.
Moreover, the overall credit deployed in the MSME sector in April was also higher at Rs 17.63 lakh crore against Rs 16.17 lakh crore deployed in March and Rs 16.10 lakh crore deployed in February. In terms of gross share of bank credit, April disbursements to MSMEs were 14.75% of gross credit of Rs 119.54 lakh crore deployed by banks across all sectors, down from 13.6% in March, 13 .8% in February and 13.11% in January. .
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Meanwhile, the sector is expected to recover with revenue growth of 15-17% for fiscal year 2021-22 thanks to the recovery in demand following the resumption of economic activity with the gradual easing of security restrictions. Covid, a study by Assocham -Crisil in April says. The recovery was seen across all sectors, with construction, commodities, exports and consumer services leading the pack, the study added. Growth in FY22 followed negative growth of approximately 10% in FY21 and 6% in FY20. For FY23, the study estimated growth of 11-13% for the MSME sector.