Indicating better repayment capacities of micro small and medium enterprises (MSMEs) inGujarat, the non-performing assets (NPAs) of MSMEs have significantly reduced in the fiscal 2022-23.<\/p>\n
Fuelled by post-Covid demand improvement in FY2023, the grossNPAs for MSMEshave gone down by 10% from Rs 9,326 crore in FY2022 to Rs 8,432 crore in a year, according to the latest report by the State Level Bankers’ Committee (SLBC) Gujarat. During the same period, advances to MSMEs went up 17% from Rs 2.13 lakh crore to Rs 1.82 lakh crore.<\/p>\n
Bankers attributed the decline in bad loan burden from NPAs to major repayments that took place from a few major accounts, companies opting for restructuring as well as improvement of business in certain sectors. “Big chunks of repayments have been made in the MSME sector during the year. This may have resulted in a significant decline in the NPAs for MSMEs which grew since the Covid year. Overall, there was a demand improvement in some of the sectors during FY2023, which streamlined cashflow cycles for many MSMEs and led to an improvement. As a result, the loan repayment improved,<\/p>\n","protected":false},"excerpt":{"rendered":"