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Lockdown upsets credit flow to MSME sector in West Bengal

Credit flow to the MSME sector in West Bengal has slowed in the first two months of current fiscal due to the lockdown, an official said on Friday.

Siddhartha Singh

Siddhartha SinghBy Siddhartha Singh

Published on 12 Jun 2020 1:18 PM GMT

Lockdown upsets credit flow to MSME sector in West Bengal
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Lockdown upsets credit flow to MSME sector in West Bengal
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Kolkata: Credit flow to the MSME sector in West Bengal has slowed in the first two months of current fiscal due to the lockdown, an official said on Friday.

The banks had extended Rs 69,000 crore of credit to the sector in 2019-20, achieving 99 per cent of the annual target of Rs 70,000 crore, he said.

The target for 2020-21 is Rs 90,000 crore, he said.

"The banks' lending to the MSME sector has slowed in April and May due to the lockdown," an official of the state government said.

The bank credit flow to the MSMEs was Rs 11,000 crore till the first week of May of the current fiscal, he said.

According to him, credit flow to the micro, small and medium enterprises in the state stood at Rs 19,541 crore during the April-June quarter of the last fiscal, which was roughly 28 per cent of the annual target.

"Owing to the lockdown, the figures for the first quarter of last fiscal and corresponding period of 2020-21 are not comparable," he said.

In the last meeting of the SLBC sub-committee on MSMEs, it had been decided to approach to the Reserve Bank of India for increasing additional credit limit of 30 per cent for working capital of these units.

Shortly after the lockdown was announced, the banks started providing emergency credit to the tune of 10 per cent of fund-based limit to the MSME sector.

(PTI)

Siddhartha Singh

Siddhartha Singh

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