Thursday, June 27News That Matters

Concerns on credit supply to small business a myth: SBI

SBI report has claimed that concerns on credit supply to small businesses are a myth, adding that the sector has had a stupendous loan growth since the launch of GST.

The report prepared by SBI economists says that incremental credit to Medium and Small-scale Enterprises under priority sector lending has increased by five times to 1.23 lakh crore rupees as compared to 25,700 crore rupees during the corresponding pre-GST period.

The report concludes that deceleration in credit in the pre-GST period was partly due to overall slowdown in economic activity, rising NPAs and reclassification of food and agro-processing units from MSME category to the agriculture sector.

This report comes amid concerns being raised over the health of MSMEs; forcing the Reserve Bank to announce a special dispensation.

Leave a Reply