Banks have logged growth of 24.59 per cent in credit flow to the MSME (micro, small & medium enterprises) sector in 2011-12. Total advances to the sector stood at Rs 2812.48 crore in last fiscal.
The share of advances to small enterprises in the MSME segment was the highest at Rs 1322.86 crore made available through 4972 accounts. Credit to micro and small units stood at Rs 1101.08 crore and Rs 388.52 crore respectively, according to latest data compiled by State Level Bankers' Committee (SLBC).
Public sector banks lent Rs 1207.59 crore to the sector while their private sector counterparts were not lagging far behind with disbursal of Rs 1067.19 crore in 2011-12. The five regional rural banks (RRBs)- Baitarani Gramya Bank, Utkal Gramya Bank, Kalinga Gramya Bank, Neelachal Gramya Bank and Rushikulya Gramya Bank, too contributed Rs 537.70 crore to the MSME credit kitty.
Among the PSU banks, SBI was the largest lender at Rs 185.54 crore. Other prominent lenders were Punjab National Bank (Rs 103.12 crore), Oriental Bank of Commerce (Rs 83.75 crore), Allahabad Bank (Rs 81.42 crore) and United Bank of India (Rs 82.82 crore).
Two leading private banks- Axis Bank and HDFC Bank recorded credit flow of Rs 646.28 crore and Rs 297.51 crore respectively, faring lot better than their public sector peers. Cumulatively, banks have advanced Rs 14154.10 crore to the MSME sector (as on March 31, 2012).As per Government of India guidelines, credit flow to MSME sector needs to record year-on-year growth of at least 20 per cent and 10 per cent annual growth in number of MSME accounts.