Advances to MSMEs go up in Gujarat: SLBC Report

A latest report of the State Level Bankers’ Committee (SLBC) – Gujarat has informed that the Micro, Small and Medium Enterprises (MSME) advances went up by Rs 10,956 crore, (9 per cent of Rs 1.28 lakh crore) in the second quarter of 2019-20 to Rs 1.39 lakh crore in the corresponding period of 2020-21.

“MSMEs in the manufacturing sector have taken advantage of the Emergency Credit Line Guarantee Scheme, announced by the government. In Gujarat, nearly Rs 9,941 crore worth of disbursement took place to the MSMEs under this scheme during the said quarter. Most companies availed loans to fulfil working capital requirements,” said MM Bansal, convener, SLBC, Gujarat.

“Agri loans were availed on the other hand to fulfil expenditure requirements during the Rabi season. A number of farmers had availed loans for seasonal crops such as potato, cotton and even pulses,” he added.

The quarter also saw a decline in bad loans. However, that was no reflection of any improvement in either the agriculture sector or even the MSMEs.

As per the report, MSME NPAs declined marginally by 1.25 per cent year-on-year from Rs 10,290 crore to Rs 10,161 crore.