Simultaneously, the asset quality in these loans continued to deteriorate for a second consecutive quarter.
The decline in credit growth to MSMEs, from 20 percent to 25 percent a year ago, was led by a slowdown across all ticket sizes, although the larger ticket-size segments (₹1 crore to ₹50 crore) saw steeper deceleration. The loan book has declined sequentially for two consecutive quarters (down 3 percent in the first half of FY20), the report said.
MSMEs accounted for about 28 percent of the overall commercial lending in India as of Q2, with an on-balance sheet loan outstanding of ₹18.3-lakh crore.
PSB market share
This story is from the January 14, 2020 edition of The Hindu Business Line.
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This story is from the January 14, 2020 edition of The Hindu Business Line.
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