Gross NPA ratio of Scheduled Commercial Banks in MSME sector falls sharply in recent years

Last Updated : Mar 12 2025 | 12:04 PM IST

Ministry of Finance stated in a latest update that the total advances outstanding to MSME sector has consistently increased over the last five years. The gross NPAs and gross NPA ratio of MSME Sector have continuously decreased during the same period. Further, as per the provisional data of FY 2025 i.e. till 31.12.2024, furnished by RBI, both Gross NPAs and Gross NPA ratio of MSME Sector has declined. Gross NPA ratio, of Scheduled Commercial Banks (SCBs) in MSME sector fell from 11% in FY2020 to 4% in FY2024. Comprehensive measures have been taken by the Government to reduce NPAs, including that pertaining to MSMEs, the Finance Ministry noted.

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Gross NPA ratio of Scheduled Commercial Banks in MSME sector falls sharply in recent years