Lending to small units fell in Q1, says MSME report

-The Hindu Business Line

Credit risk is building in auto MSMEs, says Pulse report

Mumbai: There was a marked slowdown in commercial credit growth in the quarter ending June 2019 along with a marginal deterioration in asset quality, according to the seventh edition of TransUnion CIBIL-SIDBI MSME Pulse Report.

The total on-balance sheet commercial lending exposure in India declined to Rs.63.8 lakh crores in June 2019 from Rs.65.5 lakh crores in March 2019. This slowdown comes to post a sustained quarter-on-quarter (QoQ) steady growth performance in the commercial credit segment over the last few years.

“The year-on-year (YOY) commercial credit growth stood at 10.4 per cent in the quarter ending in June 2019. However, the QoQ comparison indicates a 2.6 per cent decline in credit exposure in the quarter ending June 2019 over March 2019,” the report said.

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