Lok Sabha Question No. 4012 (UNSTARRED), answered on 2018-08-10
Subject: Loans to MSMEs
Ministry: FINANCE
Asked by: MANOJ RAJORIA, RADHESHYAM BISWAS

- (a) & (b)

Details of credit disbursed to Micro, Small and Medium Enterprises (MSMEs) units , Bank-wise and State-wise for the last three years are given at Annexure and Annexure Il, respectively.

- (c) Data relating to percentage of outstanding loans recovered from MSMEs units is not maintained centrally

## (d) & (e)

RBI has deregulated the interest rates on advances sanctioned by banks. As per extant framework, since April 01, 2016, banks have to compute actual interest rates on advances by adding the component of spread to the Marginal Cost of Funds based Lending Rates (MCLR) which is the internal benchmark for such purpose. Accordingly, the rate of interest charged by banks to the borrower varies from bank to bank and depends on various factors such as marginal cost of funds, operating cost; negative carry on account of Cash Reserve Ratio and teror premium: As per RBI; there has been an increase of 6.80% in outstanding credit to MSMEs in 2017 18 over the corresponding previous year.

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UN-STARRED QUESTION NO\_ 4012

TO BE ANSWERED ON 10th AUGUST, 2018 SHRAVANA 19, 1940 (SAKA)

## 'Loans to MSMEs'

4012 : DR: MANOJ RAJORIA:

## SHRI RADHESHYAM BISWAS:

Will the Minister of FINANCE be pleased to state

- (a) the total number of Micro, Small and Medium Enterprises (MSMEs) units that have been granted loans by the banks across the country, bank; StatelUT-wise;
- three years and the current years, bank-wise;
- (b) the total quantum of loans disbursed/sanctioned to MSMEs units during the last
- (c) the percentage of outstanding loans   that have been recovered   from the said MSMEs units   along with the number of those MSMEs that have turned into defaulters;
- reasons for frequent hike of interest rates by financial institutions and sluggish flow of credits to MSMEs, if SO, the
- (d) whether the Government has analysed the outcomes thereof; and
- (e) the corrective   steps taken by the Government to ensure   these MSMEs adequate credit at a lower rate of interest ? get

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

Government and RBI have taken several steps to facilitate provision of hassle free loans to MSMEs, which inter-alia include, advise to all SCBs to achieve 20% year-on-year growth in credit to Micro and Small Enterprises (MSEs) \_allocation of 60% of the MSEs advances to the micro enterprise accounts, a 10% annual growth in number of micro enterprise accounts, additional working capital limit to meet the requirements arising due to unforeseenlseasonal increase in demand, adoption of clusters,operationalising at least one specialised MSME Branch in every district,  simplified  computation of working   capital requirements of MSE units to make it minimum 20% of the projected annual turnover of the unit for borrowal limits Rs.5 crore , increase in coverage of loan from Rs.1 crore to Rs.2 crore under Credit Guarantee Fund Trust for Micro and Small Enterprise (CGTMSE), Board approved policy for enhanced   working capital to GST registered MSMEs; etc. upto

## Credit disbursed to Micro, Small and Medium Enterprises

1/2 (No\_\_of Ac in lakh; Amt Disbursed in Rs Crore)

|                                                                            | Bank Name                      | During 2015-16   | During 2015-16    | During 2016-17   | During 2016-17     | During 2017-18   | During 2017-18   |
|----------------------------------------------------------------------------|--------------------------------|------------------|-------------------|------------------|--------------------|------------------|------------------|
|                                                                            | Bank Name                      | No: of Alcs      | Amt Disbursed     | No: of Alcs      | Amt Disbursed      | Alcs             | Amt Disbursed    |
|                                                                            | State Bank of Bikaner & Jaipur | 0.95             | 9703.67           | 0.68             | 9475.69            | 0.00             | 0.00             |
|                                                                            | State Bank of Hyderabad        | 0.69             | 3005.35           | 0.64             | 4861.21            | 0.00             | 0.00             |
|                                                                            | State Bank of India            | 4.54             |                   | 3.91             | 68772.31           | 11.63            | 149475.34        |
|                                                                            | State Bank of Mysore           | 0.24             | 4231.39           | 0.31             | 6055.51            | 0.00             | 0.00             |
| 5                                                                          | State Bank of Patiala          | 0.31             | 921.65            | 0.02             | 594.17             | 0.00             | 0.00             |
| 6 State Bank of Travancore                                                 |                                | 0.15             | 2333.01           | 0.37             | 5020.34            | 0.00             | 0.00             |
|                                                                            | Allahabad Bank                 | 1.51             | 9130.81           | 1.06             | 6608.32            | 3.38             |                  |
| Andhra Bank                                                                |                                | 2.17             | 31436.72          | 2.47             | 26511.09           | 3.50             | 35819.45         |
| Bank of Baroda                                                             |                                | 1.92             | 22936.06          | 2.15             | 10145.93           | 1.34             | 9620.84          |
| 10 Bank of India                                                           |                                | 4.37             | 42634.97          | 3.61             | 38997.88           | 3.91             |                  |
| 11                                                                         | Bank of Maharashtra            | 0.93             | 34766.66          | 0.76             | 12576.59           | 0.80             | 214.49           |
| 12 BHARATIYA MAHILA BANK LTD                                               |                                | 0.09             | 93.11             | 0.04             | 31.92              | 0.00             | 0.00             |
| 13 Canara Bank                                                             |                                | 10.40            | 26297.58          | 2.76             | 12338.39           | 3.32             | 14245.25         |
|                                                                            | Central Bank of India          | 2.86             | 22724.54          | 2.83             | 23629.39           | 3.20             | 20581.90         |
| 15 Corporation Bank                                                        |                                | 1.68             | 15577.41          | 4.02             | 32628.29           | 2.96             | 22716.73         |
|                                                                            | Dena Bank                      | 0.55             | 17846.67          | 0.40             | 13258.47           | 0.60             | 10833.53         |
| 17 IDBI Bank Ltd.                                                          |                                | 2.03             | 18881.22          | 2.22             | 17913.38           | 2.48             | 24589.59         |
| 18                                                                         | IIndian Bank                   | 4.46             | 5338.33           | 3.39             | 7173.58            | 3.66             | 9524.52          |
| 19 Indian Overseas Bank                                                    |                                |                  | 30734.89          | 1.96             | 10203.51           | 2.43             | 10864.56         |
| 20 Oriental Bank of Commerce                                               |                                | 0.60             | 7958.66           |                  | 8577.31            | 0.36             | 6901.47          |
| 21 Punjab and Sind Bank                                                    |                                | 0.39             | 3929.57           | 0.25             | 2511.67            | 0.28             | 2881.15          |
| 22 Punjab National Bank                                                    |                                | 4.07             | 68285.21          | 4.42             | 63730.20           | 5.49             | 70652.57         |
| 23 Syndicate Bank                                                          |                                | 3.69             | 19406.74          | 2.94             | 19095.96           | 2.74             | 19142.97         |
| 24 UCO Bank                                                                |                                | 5.38             | 4750.25           | 1.79             | 11951.26           | 3.44             | 27019.90         |
| 25 Union Bank of India 26 United Bank of India                             |                                | 3.23 1.09        | 30532.88 5451.31  | 1.51             | 37413.63           | 0.57             | 11452.32         |
| 27 IVijaya Bank                                                            |                                | 1.45             |                   | 0.84             | 5371.58            | 0.80             | 3524.33          |
|                                                                            |                                |                  | 13564.77          | 0.40             | 4804.62            | 0.38             | 5193.81          |
| 28 Axis Bank                                                               |                                | 0.86             | 31436.17          | 0.80             | 22350.69           | 0.69             | 17690.01         |
| 29 Bandhan Bank                                                            |                                | 20.36            | 8214.62           | 29.10            | 15570.70           | 0.00             | 0.00             |
| 30                                                                         | Catholic Syrian Bank           | 0.87             | 997.87            | 0.53             | 935.99             | 0.54             | 798.43           |
| 31 City Union Bank                                                         |                                | 0.07             | 2434.861          | 0.07             | 2315.42            | 0.08             | 2871.95          |
| 32 Development Credit Bank 33 Dhanlaxmi Bank                               |                                | 0.10 0.53        | 2802.65 330.53    | 0.13 0.73        | 3100.35 684.64     | 0.18             | 3822.45 601.50   |
| 34 FFederal Bank                                                           |                                | 0.15             | 7446.59           | 0.31             | 9681.50            | 0.66 0.97        | 11209.38         |
| 35 HDFC Bank                                                               |                                |                  |                   |                  | 52414.81           | 14.77            |                  |
| 36 ICICI Bank                                                              |                                | 15.22 2.48       | 44598.10 39281.37 | 17.34            |                    |                  | 72375.47         |
| 37 IDFC Bank                                                               |                                | 1.07             | 320.69            | 2.83 8.24        | 50621.34 10103.08] | 0.66 3.30        | 44117.92 5723.21 |
| 38 Indusind Bank                                                           | 10.90                          |                  | 13974.18          | 8.25             | 22134.09           | 11.26            | 28740.78         |
| 39 ING Vysya Bank                                                          |                                | 0.00             | 0.00              | 0.00             | 0.00               | 0.00             |                  |
| 40 Jammu & Kashmir Bank                                                    |                                | 0.78             | 7611.14           | 1.09             | 5340.53            | 1.03             | 6636.40          |
| Karnataka Bank                                                             |                                | 0.18             | 3842.48           | 0.16             | 3926.01            | 0.12             | 4088.39          |
| 42 Karur Vysya Bank                                                        |                                | 0.48             | 3003.63           | 0.36             | 2066.22            | 0.38             | 3470.14          |
| 43 Kotak Mahindra Bank                                                     | 5.49                           |                  | 25855.27          | 1.16             | 18454.41           | 1.81             | 20776.94         |
| 44 Lakshmi Vilas Bank                                                      |                                | 0.20             | 4004.92           | 0.19             | 3903.11            | 0.17             | 3892.95          |
| 45 Nainital Bank                                                           |                                | 0.01             | 118.29            | 0.01             | 191.48             | 0.01             | 527.98           |
| 46 Ratnakar Bank                                                           |                                | 5.65             | 5724.60           |                  | 10262.07           | 3.05             | 5181.68          |
| 47 South iridian Bank                                                      |                                | 0.45             | 11251.53          | 0.32             | 12061.83           | 0.24             |                  |
| 48 Tamilnad Mercantile Bank                                                |                                | 0.32             | 7753.87           | 0.27             | 7637.13            | 0.31             | 8924.801         |
| 49 Yes Bank                                                                |                                | 2.05             | 14279.92          | 1.26             | 18847.21           | 0.98             | 26962.29         |
| 50 IAU SMALL FINANCE BANK LTD                                              |                                | 0.00             | 0.00              | 0.00             | 0.00               | 0.97             | 5953.38          |
| 51 CAPITAL SMALL FINANCE BANK LIMITED                                      |                                |                  | 0.00              | 0.00             | 0.00               | 0.02             | 270.06           |
| 52 EQUITAS SMALL FINANCE BANK LIMITED                                      |                                | 0.00             | 0.00              | 0.00             | 0.00               | 2.68             | 2516.59          |
| 53 ESAF SMALL FINANCE BANK LIMITED                                         |                                | 0.00             | 0.00              | 0.00             | 0.00               | 2.98             | 845.97           |
| 54 FINCARE SMALL FINANCE BANK LIMITED 55 SURYODAYA SMALL FINANCE BANK LTD_ |                                | 0.00             | 0.00              | 0.00             | 0.00               | 1.37             | 366.87           |
| 56                                                                         |                                | 0.00             | 0.00              | 0.00             | 0.00               | 2.72             | 872.35           |
| UJJIVAN SMALL FINANCE BANK LIMITED                                         |                                | 0.00             | 0.00              | 0.00             | 0.00               | 2.32             | 749.99           |
| 57 UTKARSH SMALL FINANCE BANK LIMITED                                      |                                | 0.00             | 0.00              | 0.00             | 0.00               | 0.49             | 124.09           |

| Sr No   | Bank Name                                 | During 2015-16   | During 2015-16   | During 2016-17   | During 2016-17   | During 2017-18   | During 2017-18   |
|---------|-------------------------------------------|------------------|------------------|------------------|------------------|------------------|------------------|
| Sr No   | Bank Name                                 | No. of Alcs      | Amt Disbursed    | No. of Alcs      | Amt Disbursed    | No. of Alcs      | Amt Disbursed    |
| 58      | AB BANK LIMITED                           | 0.00             | 0.00             | 0.00             | 0.64             | 0.00             | 21.25            |
| 59      | ABU DHABI COMMERCIAL BANK PJSC            | 0.00             | 81.05            | 0.00             | 275.23           | 00               | 13.44            |
| 60      | AUSTRALIA AND NEW ZEALAND BANKING GROUP   | 0.00             | 23.00            | 0.00             | 423.00           | 0.00             | 324.751          |
| 61      | BANK OF AMERICA NATIONAL ASSOCIATION      | 0.01             | 15937.30         | 0.01             | 9866.29          | 0.00             | 5675.11          |
| 62      | BANK OF BAHRAIN & KUWAIT B.SC             | 0.00             | 35.43            | 0.00             | 0.00             | 0.00             | 15.00            |
| 63      | BANK OF CEYLON                            | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 11.81            |
| 64      | BANK OF NOVA SCOTIA                       | 0.01             | 1572.43          | 0.01             | 970.74           | 0.01             | 965.52           |
| 65      | BARCLAYS BANK PLC                         | 0.00             | 588.43           | 0.18             | 872.56           | 0.00             | 255.49           |
| 66      | BNP PARIBAS                               | 0.00             | 4819.59          | 0.00             | 2367.71          | 0.00             | 760.66]          |
| 67      | CITIBANK NA                               | 0.04             | 8758.21          | 0.03             | 14197.15         | 0.03             | 14453.95         |
| 68      | COOPERATIEVE RABOBANK UA                  | 0.00             | 0.00             | 0.00             | 54.50            | 0.00             | 7.75             |
| 69      | CREDIT AGRICOLE CORPORATE AND INVESTMENT  | 0.00             | 0.00             | 0.00             | 100.00           | 0.00             | 210.25           |
| 70      | CREDIT SUISSE AG                          | 0.00             | 0.00             | 0.00             | 125.00           | 0.00             | 52.50            |
| 71      | CTBC BANK CO. LTD                         | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             |
| 72      | DBS BANK LTD.                             | 0.00             | 308.39           | 0.00             |                  | 0.00             | 763.64           |
| 73      | DEUTSCHE BANK AG                          | 0.02             | 1282.12          | 0.02             | 1657.44          | 0.02             | 2014.49          |
| 74      | DOHA BANK QSC                             | 0.00             | 0.001            | 0.00             | 30.00            | 0.00             | 0.00             |
| 75      | FIRST ABU DHABI BANK PJSC                 | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             |
| 76      | FIRSTRAND BANK LTD                        | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             |
| 77      | HONGKONG AND SHANGHAI BANKING CORPN LTD.  | 0.76             | 10261.00         | 0.59             | 10051.22         | 0.88             | 9039.33          |
| 78      | IINDUSTRIAL AND COMMERCIAL BANK OF CHINA  | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 8.00             |
| 79      | IINDUSTRIAL BANK OF KOREA                 | 0.00             | 0.00             | 0.00             | 11.35            | 0.00             | 29.62            |
| 80      | JJPMORGAN CHASE BANK NATIONAL ASSOCIATION | 0.00             | 149.09           | 0.00             | 401.31           | 0.00             | 539.651          |
| 81      | JSC VTB BANK                              | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             |
| 82      | KEB HANA BANK                             | 0.00             | 0.87             | 0.00             | 9.08             | 0.00             | 12.16            |
| 83      | KRUNG THAI BANK PUBLIC COMPANY LIMITED    | 0.00             | 9.79             | 0.00             | 14.61            | 0.00             | 0.00             |
| 84      |                                           | 0.00             | 0.00             | 0.00             | 5.50             | 0.00             | 0.00             |
| 85      | MIZUHO BANK LTD                           | 0.00             | 1359.48          | 0.00             | 946.85           | 0.00             | 1237.34          |
| 86      | NATIONAL AUSTRALIA BANK                   | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 10.00            |
| 87      | PT BANK MAYBANK INDONESIA TBK             | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             |
| 88      | Oman International Bank                   | 0.00             | 30.00            | 0.00             | 0.00             | 0.00             | 0.00             |
| 89      | QATAR NATIONAL BANK SAQ                   | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             |
| 90      | ISBERBANK                                 | 0.00             | 0.00             | 0.00             | 6.75             | 0.00             | 0.00             |
| 91      | SBM BANK (MAURITIUS) LTD                  | 0.00             | 80.00            | 0.00             | 116.00           | 0.00             | 325.12           |
| 92      | SHINHAN BANK                              | 0.00             | 565.23           | 0.01             | 1995.34          | 0.05             | 5490.46          |
| 93      | SOCIETE GENERALE                          | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             |
| 94      | SONALI BANK                               | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 0.001            |
| 95      | ISTANDARD CHARTERED BANK                  | 0.02             | 10617.36         | 0.05             | 9582.03          | 0.13             | 11858.19         |
| 96      | ISUMITOMO MITSUI BANKING CORPORATION      | 0.00             | 0.70             | 0.00             | 0.00             | 0.02             | 152.56           |
| 97      | THE BANK OF TOKYO-MITSUBISHI UFJ LTD      | 0.00             | 869.12           | 0.04             | 2031.16          | 0.05             | 6572.05          |
| 98      | THE ROYAL BANK OF SCOTLAND PLC            | 0.00             | 129.77           | 0.00             | 0.00             | 0.00             | 0.00             |
| 99      | UNITED OVERSEAS BANK LTD                  | 0.00             | 1.30             | 0.00             | 31.00            | 0.00             | 38.00            |
| 100     | WESTPAC BANKING CORPORATION               | 0.00             | 0.00             | 0.00             | 0.00             | 0.00             | 26.501           |
| 101     | WOORI BANK                                | 0.00             | 3.59             | 0.00             | 4.09             | 0.00             | 5.07             |
|         | Total                                     | 134.67           | 876547.14        | 127.07           | 789227.21        | 113.21           | 885812.37        |

Source: RBI

## Annexure Il refered to in reply to the Lok Sabha Un-starred Qs. no. 4012 for answer on 10.8.2018

## Credit disbursed to Micro, Small and Medium Enterprises by Scheduled Commercial Banks

(No. of in lakh; Amt. Disbursed in Rs. Crore)

| Sr. No   | State Name         | During 2015-16   | During 2015-16   | During 2016-17   | During 2016-17   | During 2017-18   | During 2017-18   |
|----------|--------------------|------------------|------------------|------------------|------------------|------------------|------------------|
| Sr. No   | State Name         | No: of Alc       | Amt: Disbursed   | No. of Alc       | Amt: Disbursed   | No: of Alc       | Amt: Disbursed   |
|          | ANDAMAN & NICOBAR  | 0.06             | 491.53           | 0.04             | 313.91           | 0.05             | 380.75           |
|          | ANDHRA PRADESH     | 6.37             | 31618.29         | 4.70             | 26746.64         | 6.25             | 32537.49         |
|          | ARUNACHAL PRADESH  | 0.04             |                  | 0.02             | 206.31           | 0.04             | 290.88           |
|          | ASSAM              | 4.50             | 7470.80          | 5.19             | 7339.13          | 1,62             | 7289.28          |
|          | BIHAR              | 4.52             | 11491.05         | 5.03             | 11330.07         | 3.90             |                  |
|          | CHANDIGARH         | 0.21             | 4913.01          | 0.17             | 4123.90          | 0.19             | 4910.55          |
|          | CHHATTISGARH       | 2.28             | 10685.87         | 2.16             | 11553.58         | 2.14             | 12098.59         |
|          | DADRARNAGAR HAVELI | 0.02             | 192.60           | 0.03             | 292.14           | 0.02             | 374.47           |
|          | DAMAN & DIU        | 0.01             | 125.58]          | 0.01             | 166.05           | 0.01             | 206.08]          |
| 10       | DELHI              | 2.38             | 78148.12         | 1.99             | 67695.51         | 1.62             | 79653.70         |
| 11       | GOA                | 0.36             | 2577.69          | 0.41             | 2503.47          | 0.43             | 3100.11          |
| 12       | GUJARAT            | 4.81             |                  | 4.41             | 55244.83         | 4.19             | 60152.79         |
| 13       | HARYANA            | 2.50             | 26975.961        | 2.28             |                  | 2.53             | 29479.90         |
| 14       | HIMACHAL PRADESH   | 0.63             | 4767.94          | 0.55             | 3813.59          | 0.84             | 5206.561         |
| 15       |                    | 0.96             | 8714.81          | 1.22             | 5673.54          | 1.25             |                  |
| 16       | JHARKHAND          | 2.74             | 10704.09         | 2.36             | 8192.32          | 2.42             | 10896.97         |
| 17       | KARNATAKA          | 9.15             |                  | 7.41             | 47820.66         | 8.29             | 46868.63         |
| 18       | KERALA             | 4.74             |                  | 4.98             | 29034.07         | 6.43             |                  |
| 19       | LAKSHADWEEP        | 0.01             | 15.49            | 0.01             | 15.02            | 0.03             | 119.14           |
| 20       | MADHYA PRADESH     | 6.80             | 25948.31         | 6.20             | 24767.89         | 6.37             | 30671.59         |
| 21       | MAHARASHTRA        | 18.79            | 208550.24        | 16.12            | 168356.38        | 10.76            | 169607.54        |
| 22       | MANIPUR            | 0.09             | 289.461          | 0.06             | 222.13           | 0.10             | 343.80           |
| 23       | MEGHALAYA          | 0.17             |                  | 0.16             | 454.95           | 0.10             | 463.85|     |
| 24       | MIZORAM            | 0.05             | 338.13           | 0.04             | 206.91           | 1.62             | 581.48           |
| 25       | NAGALAND           | 0.04             | 345.68           | 0.07             | 279.39           | 0.07             | 1075.00          |
| 26       | ODISHA             | 4.10             | 12940.71         | 3.40             | 12962.48         | 3.68             | 14945.68         |
| 27       | PUDUCHERRY         | 0.42             | 1438.52          | 0.46             | 2905.21          | 0.50             | 2116.58          |
| 28       | PUNJAB             | 3.27             |                  | 2.65             | 23609.55         | 3.41             | 32320.62         |
| 29       | RAJASTHAN          | 4.64             | 33036.33|   | 4.49             | 34274.80         | 4.66             | 42728.62         |
| 30       | SIKKIM             | 0.12             | 781.69           | 0.12             | 321.66           | 0.04             | 229.53           |
| 31       | TAMIL NADU         | 16.35            | 94990.12         | 19.99            | 85829.51         | 19.32            | 88784.61         |
| 32       | TELANGANA          | 3.15             | 30636.69         | 2.79             | 32145.47         | 3.41             |                  |
| 33       | TRIPURA            | 0.88             | 1371.31          | 1.23             | 1320.01          | 0.38             | 806.13|     |
| 34       | UTTARAKHAND        |                  | 11338.27         | 1.19             | 6252.88          | 2.17             | 19364.79         |
| 35       | UTTAR PRADESH      | 8.49             | 44298.63         | 7.70             | 43342.88         | 7.32             | 44678.44         |
| 36       | WEST BENGAL        | 19.07            | 47350.94         | 17.43            | 44561.71         | 7.061            | 49582.961        |
|          | Total              | 134.67           |                  | 127.07           | 789227.21        | 113.21           | 885812.37        |

Source: RBI