MSME loan delinquencies dip to 3% by September, shows CIBIL data

The highest drop was in the private bank segment, from 2.8 per cent in Q2FY22 to 1.5 per cent in FY23-Q2

While delinquencies in the MSME portfolio of lenders – bank and finance companies – have declined substantially till September 2022, they need to use the "Early Warning Signal" to spot stress and take preventive steps. Reacting to an account currently in the Days Past Dues (DPDs) bucket may be a delayed reaction, according to credit bureau CIBIL.

Overall, MSME NPA rates under new criterion for delinquency (90+DPD) was 3 per cent for Sep 2022 (Q2Fy23), down from 4.4 per cent same time last year (Q2FY22). The new norms exclude legacy accounts with DPD beyond 720 days or reported as loss/doubtful.