CIBIL: MSME loans of about Rs 2,32,000 crore at risk of defaulting
Loans worth Rs 2,32,000 crore of micro, small and medium enterprises are at a higher risk of becoming non-performing assets.
Parul May 5, 2020
MORE IN News
Plastic ban: Companies switch to paper straws
Cigarette makers moved from regular plastic to biodegradable wrapping: TII
Hike in import duty on gold to fuel smuggling; review decision: Industry bodies
Crypto tax explained: What are non-VDAs; How TDS going to levied on crypto
Ease in GST registration norms will benefit around 120,000 small traders
TransUnion Cibil has said that loans worth Rs 2,32,000 crore of micro, small and medium enterprises are at a higher risk of becoming non-performing assets (NPAs).
As per Cibil’s report, the NPA rate for MSMEs has increased continuously over last few years to reach 12.6 per cent as of December 2019.
The report quoted, “the number of MSMEs falling in the highest risk bracket of CMR-7 to CMR-10 has outstanding credit balances of Rs 232,000 crore, which is at a higher risk of going into NPA.” Out of these, the micro vertical (aggregate credit exposure of less than Rs 10 lakh) is in the highest risk bracket of CMR-7 to CMR-10 comprises credit outstanding of Rs 13,600 crore.
The TransUnion CIBIL MD and CEO Rajesh Kumar has said that the coronavirus poses new challenges to businesses, especially for micro enterprises and that they are committed to working closely with banks and credit institutions to support them on adjusting their MSME lending policy decisions.
Trending
