MSME lending target for PSBs raised 19.5%

FinMin sets fresh goal for FY26 at ₹17.31 trillion

- HARSH KUMAR

Amid increasing focus by the Union government for the micro, small, and medium enterprises (MSME) sector, the finance ministry has set a target for total MSME credit outstanding across all public-sector banks (PSBs) at ₹17.31 trillion for the financial year 2025-26 (FY26). This represents a projected increase of 19.5 per cent over the expected outstanding loans of ₹14.49 trillion for FY25, according to a senior government official.

According to the latest data sourced by Business Standard, the total MSME credit outstanding of PSBs as on February 28, 2025 stood at ₹13.04 trillion, reflecting a year-to-date (YTD) growth of 11.17 per cent compared to the outstanding balance of ₹11.73 trillion as of March 31, 2024.

Among the major creditors, the State Bank of India (SBI) leads with a target of ₹4.82 trillion for FY26, a 23 per cent growth over preceding year outstanding target. Punjab National Bank (PNB) follows with a 23.4 per cent growth at ₹1.58 trillion in outstanding credit.