Business Standard

MSMEs' input costs rising, but risk to restructured loan book could fall

If MSMEs are unable to pass on input costs to their customers, then units, especially weaker ones, are likely to face difficulties, said a senior executive of a private bank

Textile industy, manufacturing, msmes, jobs, workers, labour, rights
Premium

Bankers said besides restructuring and government-backed emergency credit lines, improved business amid rising economic growth is aiding capacity for debt servicing

Abhijit Lele Mumbai
The war in Ukraine is pushing up input costs for MSME: the latest crisis for a sector that first battled a slowdown in 2020 and then Covid-19 for two years.

The troubles usually would mean a bleak scenario for MSME (Micro, Small and Medium Enterprises), marked by the risk of defaults and an uptick in bad loans. However, rating agency Crisil’s view earlier this financial year that MSME’s restructured credit pool will improve adds a twist. CRISIL's revised outlook last week said that only one fourth of recast loans are at risk of becoming non-performing assets (NPAs), as against its

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in