Comments
Private sector banks (PvSBs) reported a significant increase in market share in micro, small and medium enterprise (MSME) loan originations both by value and volume in the last two financial years, with public sector banks (PSBs) and non-banking finance companies (NBFCs) losing market share.
There was a significant increase in market share (by originations value) for PvSBs from 33.6 per cent in FY 19-20 to 69.8 per cent in FY 21-22, CRIF High Mark said in its ‘MSME Insights’ report.
By originations volume, PvSBs share increased from 26.9 per cent in FY 19-20 to 33.5 per cent in FY 21-22.
“This is attributable to increase in average ticket size of Private Banks from ₹47.1 lakh in FY 19-20 to ₹150.5 lakh in FY 21-22,” per the report.
PSBs market share (by originations value), which had increased from 47.9 per cent in FY 19-20 to 72.9 per cent in FY 20-21, dropped to 19.1 per cent in FY 21-22, according to data in the credit information bureau’s report.
By originations volume, which had increased from 51 per cent in FY 19-20 to 71.6 per cent in FY 20-21, declining to 48.2 per cent in FY 21-22.
NBFCs market share (by originations value), which had declined from 12.1 per cent in FY 19-20 to 5.9 per cent in FY 20-21, dropped further to 5.7 per cent in FY 21-22.
By originations volume, which had fallen from 14.9 per cent in FY 19-20 to 6.4 per cent in FY 20-21, picked up to 12.9 per cent in FY 21-22.
Average ticket size
In FY 21-22, the average ticket size is ₹28.6 lakh for Public Sector banks, ₹32.1 lakh for NBFCs, ₹502.6 lakh for Foreign banks and ₹ 26.1 lakh for Other lender types, per CRIF’s data.
Portfolio outstanding for MSME industry at ₹22.7 Lakh crore as of March-end 2022 was up 18 per cent over March-end 2021 level (of Rs 19.3 lakh crore) and 36 per cent up over March-end 2020 level (Rs 16.7 lakh crore).
Total active loans for MSME industry at 137.4 lakh accounts as of March-end 2022 was up 7 per cent over March-end 2021 level (128.8 lakh) and 43 per cent up over March-end 2020 level (95.8 lakh).
Portfolio At Risk
Portfolio At Risk (PAR) on 91-180 days past due (DPD) basis was at 1.3 per cent as of March-end 2022, improved from 1.6 per cent as of March-end 2021.
PAR on 181-360 DPD remained stable at 0.3 per cent. PAR on 360+ DPD at 2.2 per cent as of March 2022, improved from 2.5 per cent as of March 2021.
In FY 21-22, market share (by originations value) of Small borrower segment (₹1 Crore – ₹10 Crore) is largest at 28.5 per cent, followed by Mudra segment (Up to ₹10 Lakh) at 26.2 per cent; Medium segment (₹10 Crore – ₹50 Crore) at 22.8 per cent and Micro segment (₹10 Lakh - ₹1 Crore) at 22.5 per cent.
Maharashtra, Tamil Nadu and Delhi are the top 3 states by originations value in FY 21-22, constituting 64 per cent of overall Originations value in FY 21-22.
Maharashtra, Tamil Nadu and Uttar Pradesh are the top 3 states, by originations volume in FY 21-22.
Maharashtra has highest Average ticket size of MSME loans at ₹ 256.5 lakh in FY 21-22, followed by Delhi (₹113.2 lakh) and West Bengal (₹81.1 lakh).
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.