Mumbai: The reserve bank on Friday transferred the fear of lenders about the level of delinquency to increase among small business loan borrowers, which were hit hard by the second Covid-19 wave, said the number was not worrying.
The government and the central bank encouraged to support MSMEs during a pandemic through credit measures such as the Emergency Credit Line Guarantee Scheme (ESLGS) to see loans to them jumped to Rs 9.5 lakh Crore at FY21 Hit Pandemi from Rs 6.8 Lakh Crore at FY20 Temporarily Asset quality deteriorates to 12.6 percent on March 202 from 12 percent in December 2020.
Overcoming reporter virtually on custom post-policy pressers on Friday when the central bank left the main policy level that did not change at 4 percent, Deputy RBI Governor Mukesh Jain Saying no crisis now on the front of this, because the level of stress among small business borrowers is not too high, although the slippage and loan restructuring has increased lately.
This situation is not too bad because many accounts will restructure under the Covid version 2 package announced in May, which allows rusty borrowers crisis to choose up to two years of moratorium, he said.
Yes, there is an increase in the slippage between MSME borrowers, but the quantum of Slippage has not reached a worrying level, Jain said.
We constantly monitor all regulated entities, especially banks and large NBFC to check the quality of their assets.
Our stress test also proves that no one is worrying like now, he added.
July 2821, Report by Sidbi-Cibil said the NPA level among MSME borrowers has surged to 12.6 percent in the March 2021 quarter, from 12 percent in December 2020, while loans to them have surged to RS 9.5 lakh crore at FY21 From Rs 6.8 lakh crore at FY20.
After the first wave, the RBI has asked all the banks and NBFCs importantly systematically to take stress tests, and their pre-covid numbers and 2021 show that there is an all-round increase in all parameters, whether the ratio of capital adequacy, NPA / Slippages or ratio coverage of provisions – All have increased and better than the pre-pandemic level, Jain said, added that there was also an increase in their number of profitability.
It can be noted that since the pandemic hit the nation in March last year, the government and central banks have encouraged lenders to offer easy credit for small businesses, amounted to more than 6.3 crores, because they are the backbone of the economy in terms of work and contributions to GDP.
But most of the support in the form of credit, some are guaranteed by the government if there is a default.
Last week, Union Minister of MSME Narayan Rane told Lok Sabha that around 1.09 Crore Borrowing MSMEs were given the promised guarantee support from Rs 1.65 Lakh Crore under the Emergency Credit Line Guarantee Scheme until 2 July 2022, which was announced as part of the package Covid first on May 2020 to help them fulfill their operational obligations and continue the business.
But, the number shows that only less than the six MSME borrowers who meet the requirements that can take advantage of the facilities, because there are more than 6.3 MSME crore in the country in May 2021.
Many reports say many of them have lowered pandemic leaves because of a pandemic , Close the Overall ECLG guarantee that can be accepted from RS 3 Lakh Crore to Rs 4.5 Lakh Crore at the end of June 2021.
The government has cleaned up contributions Rs 55,863.30 Crore to the UPK between May 2020 and July 2021.
Cibil-Report Sidbi said credit demand from the MSME segment surged, belonging to intervention such as the emergency credit line guarantee scheme, determining that the loan worth Rs 9.5 lakh Crore was disbursed to the MSME during the FY21 pandemics by opposing Rs 6.8 lakh crore on FY20.
The surge in credit causes stability at the entire NPA level when compared to 12.5 percent on FY20.
Commercial loan exposure reached Rs 74.36 Lakh Crore on March 202, with a growth rate of 0.6 percent, while the UMKM segment credit exposure grew 6.6 percent to Rs 20.21 lakh crore.
Credit disbursement to customers New-to-Bank MSMEs have dropped 90 percent in April 2020 compared to the pre-pandemic level and gradually recovered to 5 percent higher than the pre-pandemic level in March 2021.