The central government is paying more attention to micro, small and medium enterprises (MSMEs), in view of which the Finance Ministry has increased the debt target to MSME in FY 2025-26 by all public sector banks to Rs 17.31 lakh crore.
According to a senior government official, this is 19.5 percent higher than the debt of Rs 14.49 lakh crore given in FY 2025. According to the latest data received by Business Standard, the total debt given by public sector banks to MSME by 28 February 2025 has been Rs 13.04 lakh crore, with an increase of 11.17 percent from the year (YTD) so far as compared to Rs 11.73 crore as of Rs 11.73 crore as of 31 March 2024.
Among the major lenders, State Bank of India has been given a target of giving a loan of Rs 4.82 lakh crore to MSME in FY 2026, which is 23 percent higher than the first financial year target. The target of Punjab National Bank has been increased by 23.4 percent to Rs 1.58 lakh crore. A senior government official said, “Despite the increase in debt being given, there has been a significant decrease in gross NPAs (non -executed assets) in the last 4 years. Banks are careful about getting loans in this sector. However, the increase in loans to this sector is mainly due to the government paying attention to MSME.
Anil Bhardwaj, general secretary of the Federation of Indian Micro, Small and Medium Enterprises (FISME), said that by incorporating large medium enterprises (up to Rs 500 crore to turnover), some debt percentage can increase. But the better measure of the performance of banks for MSME is the percentage of total non -agricultural loans given to MSME.
First Published – April 18, 2025 | 10:35 PM IST
