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'PSBs driving rise in MSME credit'

Financial Express Kochi

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January 07, 2026

ENHANCED REGULATORY OVERSIGHT IMPROVES OPERATING ENVIRONMENT

- PRESS TRUST OF INDIA

LENDING BY PUBLIC sector banks (PSBs) has helped nearly double the share of loans to micro, small and medium enterprises (MSME) during January to October 2025, a report said on Tuesday.

There are signs of stress in small-ticket, unsecured MSME loans within the overall MSME credit, Crisil Intelligence said in a report.

"The share of incremental credit towards MSME loans increased to 32.5% in the current period (year to October) from 17.7% in the year-ago period," the report said, adding the proportion of MSMEs in outstanding credit increased by 1.74%.

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