Lok Sabha Question No. 2200 (UNSTARRED), answered on 2016-05-06
Subject: Loan to MSME
Ministry: FINANCE
Asked by: SADASHIV KISAN LOKHANDE, SANGANNA AMARAPPA KARADI, RODMAL NAGAR, OM PRAKASH YADAV, RAMSINH PATALYABHAI RATHWA, NARAMALLI SIVAPRASAD

## Government of India Ministry of Finance Department of Financial Services

## LOK SABHA

## UNSTARRED QUESTION NO. 2200 TO BE ANSWERED ON 6 th MAY 2016 / VAISAKHA 16, 1938 (SAKA) 'LOAN TO MSME'

2200: SHRI SADASHIV LOKHANDE:

SHRI SANGANNA AMARAPPA:

SHRI NAGAR RODMAL:

SHRI OM PRAKASH YADAV:

SHRI RAMSINH RATHWA:

DR. NARAMALLI SIVA PRASAD:

Will the Minister of FINANCE be pleased to state:

- a) whether the Government has fixed any target for granting loan to Micro, Small and Medium Enterprises (MSMEs);
- b) if so, the details thereof along with the quantum of loan disbursed by the banks during each of the last three years, State/UT-wise;
- c) the details of the sanctioned projects/loans under the MSME schemes during the said period, State-wise including Karnataka;
- d) whether the public sector banks/financial institutions also provide loan to sick industries, if so, the details thereof; and
- e) the steps taken/being taken by the Government to increase credit flow to MSME?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE

## (SHRI JAYANT SINHA)

- (a): Scheduled Commercial Banks (SCBs) have been advised to
-  achieve a 20 per cent year-on-year growth in credit to micro and small enterprises (MSEs);
-  allocate 60% of the MSE advances to micro enterprises; and
-  achieve a 10% annual growth in number of micro enterprise accounts.

In addition, under the revised Priority Sector Lending (PSL) guidelines, a target of 7.5 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, by March 2017 has been prescribed for SCBs for lending to Micro Enterprises.

- (b) & (c): State-wise outstanding credit to MSEs including Karnataka as on March 31, 2013, 2014 and 2015 are furnished in the Annexure- I .
- (d): Yes. The Public Sector Banks provide finance to sick industries for their rehabilitation following the guidelines of Reserve Bank of India (RBI). Position of Sick Small Scale Industry Units and Sick/ Weak Non-SSI Units Financed by Scheduled Commercial Banks is as per Annexure-II .
- (e): Government of India and Reserve Bank of India have taken several steps for increasing credit flow to MSMEs which inter alia, include simplified method of computation of working capital requirements, PSL targets for lending to MSEs, specialised MSE branches in each district, non discretionary one time settlement scheme, collateral free lending upto Rs. 10 lakh, credit guarantee scheme, banking code for MSE customers, differential rate of interest for MSEs, Pradhan Mantri Mudra Yojana, Stand Up India scheme, Small Industries Development Bank of India (SIDBI) Make in India Fund, SIDBI Make in India Soft Loan Fund for Micro Small & Medium Enterprises (SMILE) etc.

***

## Annexure-I

## Outstanding credit to MSE sector as reported by Scheduled Commercial Banks As on last reporting Friday of March 31, 2013, March 31, 2014 and March 31, 2015

(No. of Accounts in lakhs, Amount outstanding in Rs. crore)

| State/Union Territories   | Mar-13          | Mar-13      | Mar-14          | Mar-14      | Mar-15          | Mar-15      |
|---------------------------|-----------------|-------------|-----------------|-------------|-----------------|-------------|
|                           | No. of Accounts | Balance O/S | No. of Accounts | Balance O/S | No. of Accounts | Balance O/S |
| NORTH EASTERN REGION      | 2.36            | 9950.97     | 2.56            | 11911.08    | 3.11            | 13396.23    |
| Arunachal Pradesh         | 0.10            | 334.85      | 0.07            | 445.33      | 0.10            | 558.19      |
| Assam                     | 1.61            | 7077.25     | 1.76            | 8212.38     | 2.19            | 9502.58     |
| Manipur                   | 0.08            | 299.93      | 0.11            | 491.86      | 0.12            | 411.67      |
| Meghalaya                 | 0.13            | 581.62      | 0.15            | 661.54      | 0.17            | 742.36      |
| Mizoram                   | 0.05            | 248.56      | 0.06            | 315.19      | 0.06            | 338.02      |
| Nagaland                  | 0.13            | 461.72      | 0.10            | 408.20      | 0.13            | 387.84      |
| Tripura                   | 0.26            | 947.04      | 0.31            | 1376.58     | 0.33            | 1455.56     |
| EASTERN REGION            | 17.12           | 71268.90    | 17.45           | 90145.08    | 20.81           | 98296.12    |
| Andaman& Nicobar          | 0.08            | 349.33      | 0.09            | 626.25      | 0.09            | 505.14      |
| Bihar                     | 4.34            | 8914.01     | 4.10            | 11674.03    | 4.49            | 13953.95    |
| Jharkhand                 | 2.19            | 9631.58     | 2.16            | 11142.68    | 2.40            | 13232.30    |
| Orissa                    | 4.35            | 12385.31    | 4.32            | 14536.26    | 3.90            | 16674.75    |
| Sikkim                    | 0.04            | 304.40      | 0.05            | 322.35      | 0.10            | 414.01      |
| West Bengal               | 6.12            | 39684.27    | 6.73            | 51843.51    | 9.84            | 53515.98    |
| CENTRAL REGION            | 15.19           | 79952.13    | 17.84           | 102329.42   | 20.03           | 120941.58   |
| Chattisgarh               | 1.38            | 9634.03     | 1.46            | 12304.95    | 1.57            | 13384.18    |
| Madhya Pradesh            | 4.68            | 19819.06    | 5.48            | 26775.81    | 6.34            | 36252.33    |
| Uttar Pradesh             | 8.09            | 42930.72    | 8.86            | 50724.21    | 9.46            | 55550.09    |
| Uttarakhand               | 1.04            | 7568.32     | 2.04            | 12524.45    | 2.67            | 15754.98    |
| NORTHERN REGION           | 16.37           | 160853.20   | 18.52           | 202055.81   | 19.68           | 227874.06   |
| Chandigarh                | 0.32            | 6398.17     | 0.32            | 7487.66     | 0.29            | 7787.91     |
| Delhi                     | 2.58            | 54941.94    | 3.36            | 71879.91    | 3.48            | 78455.76    |
| Haryana                   | 2.62            | 24468.29    | 2.88            | 31900.62    | 3.23            | 36683.16    |
| Himachal Pradesh          | 0.93            | 5049.48     | 0.89            | 5555.08     | 0.88            | 6123.89     |
| Jammu & Kashmir           | 1.78            | 6697.60     | 1.91            | 7236.89     | 2.20            | 8395.84     |
| Punjab                    | 3.17            | 34934.80    | 3.75            | 41933.14    | 3.98            | 47239.67    |
| Rajasthan                 | 4.97            | 28362.92    | 5.40            | 36062.52    | 5.61            | 43187.84    |
| WESTERN REGION            | 20.49           | 178247.87   | 22.11           | 211584.18   | 24.75           | 237693.31   |
| Dadra & Nagar Haveli      | 0.02            | 189.41      | 0.02            | 278.31      | 0.03            | 386.62      |
| Daman &Diu                | 0.01            | 237.03      | 0.02            | 349.83      | 0.02            | 508.47      |
| Goa                       | 0.42            | 2624.20     | 0.49            | 3092.74     | 0.65            | 4345.86     |
| Gujarat                   | 5.65            | 47494.69    | 6.32            | 62840.36    | 7.26            | 73096.50    |
| Maharashtra               | 14.40           | 127702.54   | 15.25           | 145022.94   | 16.78           | 159355.86   |
| SOUTHERN REGION           | 40.33           | 186935.67   | 47.13           | 233066.90   | 49.85           | 262972.87   |
| Andhra Pradesh            | 10.70           | 47476.70    | 12.68           | 57915.64    | 12.46           | 63925.10    |
| Karnataka                 | 7.39            | 34920.74    | 9.18            | 48200.93    | 11.37           | 59501.65    |
| Kerala                    | 5.23            | 23141.13    | 5.58            | 29909.39    | 6.32            | 34766.59    |
| Lakshadweep               | 0.01            | 9.51        | 0.01            | 9.66        | 0.02            | 63.95       |
| Pondicherry               | 0.36            |             | 0.49            | 1832.00     | 0.53            | 2459.93     |
| Tamilnadu                 |                 | 1395.57     |                 |             |                 |             |
| All India                 | 16.63           | 79992.02    | 19.18           | 95199.28    | 19.14           | 102255.66   |
|                           | 111.86          | 687208.74   | 125.60          | 851092.48   | 138.24          | 961174.17   |

## Annexure- II

| Year (end- March)   |         |                    | SSI/ MSE Sick   | SSI/ MSE Sick      | Non-SSI Weak   | Non-SSI Weak       | (Amount in ₹ Billion)   | (Amount in ₹ Billion)   |
|---------------------|---------|--------------------|-----------------|--------------------|----------------|--------------------|-------------------------|-------------------------|
| Year (end- March)   | Units   | Amount Outstanding | Units           | Amount Outstanding | Units          | Amount Outstanding | Units                   | Amount Outstanding      |
|                     |         | 34.43              |                 |                    |                |                    |                         | 131.34                  |
| 1993                | 238176  |                    | 1867            | 79.01              | 657            | 17.90              | 240700                  |                         |
| 1994                | 256452  | 36.80              | 1909            | 81.52              | 591            | 18.64              | 258952                  | 136.96                  |
| 1995                | 268815  | 35.47              | 1915            | 87.40              | 476            | 14.52              | 271206                  | 137.39                  |
| 1996                | 262376  | 37.22              | 1956            | 88.23              | 418            | 12.03              | 264750                  | 137.48                  |
| 1997                | 235032  | 36.09              | 1948            | 86.14              | 420            | 15.64              | 237400                  | 137.87                  |
| 1998                | 221536  | 38.57              | 2030            | 98.62              | 446            | 19.64              | 224012                  | 156.82                  |
| 1999                | 306221  | 43.13              | 2357            | 131.14             | 435            | 20.37              | 309013                  | 194.64                  |
| 2000                | 304235  | 46.08              | 2742            | 167.48             | 422            | 22.99              | 307399                  | 236.56                  |
| 2001                | 249630  | 45.06              | 2928            | 184.78             | 389            | 27.92              | 252947                  | 257.76                  |
| 2002                | 177336  | 48.19              | 2880            | 175.91             | 381            | 36.55              | 180597                  | 260.65                  |
| 2003                | 167980  | 57.06              | 2999            | 215.18             | 397            | 75.91              | 171376                  | 348.16                  |
| 2004                | 138811  | 52.85              | 5054            | 311.66             | 567            | 45.31              | 144432                  | 409.82                  |
| 2005                | 138041  | 53.80              | 4478            | 296.44             | 774            | 47.83              | 143293                  | 398.07                  |
| 2006                | 126824  | 49.81              | 3408            | 260.13             | 1132           | 69.76              | 131364                  | 379.70                  |
| 2007                | 114132  | 52.67              | -               | -                  | -              | -                  | -                       | -                       |
| 2008                | 85187   | 30.82              | -               | -                  | -              | -                  | -                       | -                       |
| 2009                | 103996  | 36.19              | -               | -                  | -              | -                  | -                       | -                       |
| 2010                | 77723   | 52.33              | -               | -                  | -              | -                  | -                       | -                       |
| 2011                | 90141   | 52.11              | -               | -                  | -              | -                  | -                       | -                       |
| 2012                | 85591   | 67.90              | -               | -                  | -              | -                  | -                       | -                       |
| 2013                | 220492* | 124.42             | -               | -                  | -              | -                  | -                       | -                       |
| 2014                | 465492  | 263.11             | -               | -                  | -              | -                  | -                       | -                       |
| 2015                | 528300  | 253.88             | -               | -                  | -              | -                  | -                       | -                       |

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