Tag: Sivasubramanian Ramann

Findings from the latest edition of the SIDBI – TransUnion CIBIL MSME Pulse Report indicate that in FY 2021, loans worth 9.5 lakh crores were disbursed to MSMEs. This amount is much higher than the preceding year- FY 2020, when loans amounting to ₹6.8 lakh crores were disbursed. Government interventions like Emergency Credit Line Guarantee Scheme (ECLGS) under the AtmaNirbhar Bharat program was the major factor in driving this significant surge in credit disbursement to MSMEs MSME segment’s credit exposure stood at ₹20.21 lakh crores as of March ’21, showing YOY growth rate of 6.6%. This credit growth is observed across all the sub segments of MSME lending.

The insights on the key shift in MSME lending, this edition of MSME Pulse covers an analysis1 of borrower profiles of entities getting funded post-COVID wave-1 compared to entities getting funded pre-COVID wave-1. The analysis captures the payment behavior of MSMEs across their outstanding obligations. The analysis reveals that of the MSME that were given loans in the period of Jan to Mar ’21, 29% had missed more than one payment in the last three months and the MSMEs that were given loans during Jan to Mar’ 20, 21% had missed more than 1 payment in the preceding 3 months

MD & CEO of TransUnion CIBIL, Shri Rajesh Kumar said, “The belief in India’s growth story is reasserted with the significant surge in MSME credit demand post unlocks. This growth story has been supported from the supply side by credit institutions who have astutely implemented the government’s pro-growth initiatives like ECLGS and restructuring by using data analytics and solutions from financial intermediaries like TransUnion CIBIL. This commendable resilience and promising prospects of our country’s MSME sector signals strong resurgence potential and stands testimony to the stability and strength of our economy,”.

Shri Sivasubramanian Ramann, Chairman and Managing Director of SIDBI said, “The MSME credit data speaks volumes of the success of ECLGS scheme. The scheme has played a major role in 40% Y-o-Y growth in disbursements to the sector, thereby reviving the business sentiments among the MSMEs. The key highlight which signals the revival is credit to new-to-bank (NTB) which has returned back to pre-COVID levels, while credit to existing-to-bank (ETB) remains buoyant. The recent additional relief measures by the Government, especially in healthcare, travel and tourism, are expected to improve credit offtake in the MSME sector. Going forward, the lenders need to continuously monitor the health of credit portfolios, while sustaining credit growth to MSMEs.”