Mumbai, June 24, 2022
Mumbai, June 24, 2022
CRIF High Mark released data on MSME loans on the occasion of MSME Day 2022. The report highlights overall trends across MSME lending, from FY20 – FY22. Key data includes active MSME loans, portfolio outstanding, market share, and originations by value and volume across products, lender types, and geographies.
According to the research report, as of March 2022, the MSME industry's portfolio outstanding was ₹22.7 lakh crore, an increase of 36% over March 2020 and an increase of 18% over March 2021. As of March 2022, there were 13.74 million active loans for the MSME sector, an increase of 7% from March 2021 and a 43% increase from March 2020. PAR 91-180 DPD improved from 1.6% as of March 2021 to 1.3 percent as of March 22. PAR 181-360 DPD held steady at 0.3%. As of March 2022, PAR 360+ DPD was at 2.2%, improving from 2.5% as of March 2021.
Navin Chandani, MD & CEO of CRIF High Mark, said: “MSMEs are the backbone of the Indian economy, and our data aims to examine the key credit trends emerging for this segment as we celebrate MSME Day 2022. The fact that the total loans granted to MSMEs has increased by nearly 50% compared to pre-pandemic levels is a clear indication that the lending community is actively supporting the resilience and regrowth of this sector. We will continue to publish rich data and insights to benefit the lending ecosystem for small businesses.”
₹3,729k crore was the total amount granted in FY22, an increase of roughly 5% over FY21 and 182% over FY20. At 5.15 million accounts, total loans sanctioned in FY22 represented a 47% increase over FY20. From ₹37.7 lakh in FY20 to ₹72.4 lakh in FY 21–22, the average ticket size of MSME loans increased by 92%.
The Small Borrower Segment had the highest market share by origination value in FY22 at 28.5%, followed by the Mudra Segment at 26.2%. By origination volume, the Mudra Borrower Segment had the biggest market share in FY22 at 57.7%, followed by the Micro Segment at 21.2%.
The market share by origination value of private banks significantly increased from 33.6% in FY20 to 69.8% in FY22. Their share climbed from 26.9% in FY20 to 33.5% in FY22 by origination volume. This is attributable to an increase in the average ticket size of Private Banks from ₹47.1 lakh to ₹150.5 lakh from FY20 to FY22. Public sector banks and NBFCs had a decline in market share during this period. The average ticket size for Public Sector Banks in FY22 was ₹28.6 lakh, ₹32.1 lakh for NBFCs, ₹502.6 lakh for Foreign Banks, and ₹26.1 lakh for Other Lender Types.
Geographically, the top 10 states accounted for 90% of the origination value in FY22. The top 3 states, Maharashtra, Tamil Nadu, and Delhi, made up 64% of the total origination value in FY22. According to origination volume, Maharashtra, Tamil Nadu, and Uttar Pradesh were the top 3 states, and with an average ticket size of ₹256.5 lakh in FY22, Maharashtra had the largest MSME loan portfolio. As of March 2022, among the top 10 states, PAR 91-180 DPD was lowest for Haryana at 0.6%, while PAR 180+ DPD was lowest for Gujarat, Haryana, and Rajasthan at 1.7% each.
75% of the total origination value in FY22 came from the top 25 districts. The top 5 districts were Mumbai, Mumbai Suburban, Chennai, Kolkata, and Bengaluru, accounting for about 56% of the total origination value in FY22. According to the origination volume in FY22, the top 5 districts were Bengaluru, Mumbai, Pune, Ahmedabad, and Lucknow. As of March 2022, among the top 25 districts, PAR 91-180 DPD was lowest for Gurugram district at 0.5%, while PAR 180+ DPD was lowest for Ahmedabad district at 1.5%.
