CRIF High Mark's MSME data reveals that loans totalling ₹3,729K crore were sanctioned in FY22, up 182% from FY20
- Average ticket size of MSME loans increased by 92% - from ₹37.7 lakh in FY20 to ₹72.4 lakh in FY22
- Maharashtra has the highest average ticket size for MSME loans at ₹256.5 lakh in FY22, and the top 10 states account for 90% of total originations value
- The top 5 districts by originations value in FY21–22 are Mumbai, Mumbai Suburban, Chennai, Kolkata and Bangalore, accounting for 56% of the total originations value in FY22
- Public sector banks and NBFCs lost their market share to Private Banks which enjoyed 69.8% market share by originations value and 33.5% by originations volume in FY22
Mumbai, 24th June 2022 -CRIF High Mark, a leading Indian credit bureau, released data on MSME loans around the MSME Day 2022. The report highlights overall trends across MSME lending, from FY20 – FY22. Key datapoints include the active MSME loans, portfolio outstanding, market share, and originations by value and volume across product, lender type, and geography.
As per 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 21. As of March 2022, there were 137.4 lakh 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 percent as of March 2021.
Navin Chandani, MD & CEO, 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 total loans given 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 & insights to benefit the lending ecosystem for small businesses.”
₹3,729 K crore was the total amount sanctioned in FY22, an increase of roughly 5% over FY21 and 182% over FY20. At 51.5 lakh 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%.
MSME BORROWER SEGMENTS
Small Borrower Segment had the highest market share by originations value in FY22 at 28.5%, followed by Mudra Segment at 26.2%. By originations volume, Mudra Borrower Segment had the biggest market share in FY22 at 57.7%, followed by Micro segment at 21.2%.
Market share by originations 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 originations volume. This is attributable to increase in 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 is ₹28.6 lakh, for NBFCs it is ₹32.1 lakh, for Foreign Banks it is ₹502.6 lakh, and for Other Lender Types it is ₹26.1 lakh.
Geographically, the top 10 States account for 90% of Originations Value in FY22. The top 3 states Maharashtra, Tamil Nadu, and Delhi, make up 64% of the total originations value in FY22. According to originations volume, Maharashtra, Tamil Nadu, and Uttar Pradesh are the top 3 states and with an average ticket size of ₹256.5 lakh in FY22, Maharashtra has the largest MSME loan portfolio. As of March 2022, among top 10 states, PAR 91-180 is least for Haryana at 0.6%, while PAR 180+ is least for Gujarat, Haryana, and Rajasthan at 1.7% each.
75% of the total Originations Value in FY22 came from the top 25 districts. The top 5 districts are Mumbai, Mumbai Suburban, Chennai, Kolkata, and Bengaluru, making about 56% of the total originations value in FY22. According to Originations volume in FY22, the top 5 districts were Bengaluru, Mumbai, Pune, Ahmedabad, and Lucknow. As of Mar 2022, among top 25 districts, PAR 91-180 is least for Gurugram district at 0.5%, while PAR 180+ is least for Ahmedabad district at 1.5%.