MSME Credit Growth Recovers; Commercial Credit Inquiries Back To Pre-Covid-19 Levels - CIBIL Report: Motilal Oswal 
Customers count Indian rupee banknotes while sitting in a store (Photographer Dhiraj Singh /Bloomberg)

MSME Credit Growth Recovers; Commercial Credit Inquiries Back To Pre-Covid-19 Levels - CIBIL Report: Motilal Oswal 

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Motilal Oswal Report

As per the latest Micro Small and Medium Enterprises Pulse report by TransUnion CIBIL, total MSME credit grew 5.7% YoY (3.5% QoQ) to Rs 19.1 trillion as of September 2020, aided by Emergency Credit Line Guarantee Scheme disbursements, with better trends witnessed in the micro segment (8-9% YoY).

Inquiry trends in commercial credit touched pre-Covid-19 levels (13% YoY as of December 2020) after witnessing a sharp drop in April 2020.

Public sector banks have taken a lead in MSME loan originations since Apr-20 and gained market share.

However, recent inquiry trends suggest that private banks are inching back to pre-Covid-19 levels, with 22% YoY growth in inquiries versus 9% growth for PSBs in Dec-20.

Click on the attachment to read the full report:

Motilal Oswal Financials MSME Sector Update.pdf

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