CRISIL SME Tracker: Lending boost can give service-sector MSEs a lift

This is in line with the trend seen in the recent edition of CriSidEx, where 60 per cent of lenders reported highest credit growth in the sub-~10 million exposure segment

Bank credit to micro and small enterprises (MSEs) in the services sector has much scope for improvement despite a visible uptrend so far this decade, a CRISIL study indicates.

As of September 2018, MSEs’ share of the total advances of scheduled commercial banks to all services entities stood at 29 per cent, compared with 23 per cent as of March 2010. In other words, the share of large and medium peers has fallen from 77 per cent to 71 per cent. 

This has reduced the MSEs’ credit gap vis-à-vis larger peers. And while the six percentage point improvement per se