Commercial Credit Growth Continues To Rise, Credit exposure In India Stands At Rs 116.7 Lakh Crores

Total credit exposure in India stood at Rs 116.7 Lakh Crores as of March 19 of which the corporate segment holds the largest share of 55% and exposure of ₹64.1 Lakh Crores. The remaining exposure of Rs 52.6 Lakh Crores belongs to Individual Lending, including Consumer Lending, Business Lending and other Retail, Agriculture and Priority Sector lending, noted the latest TransUnion CIBIL- SIDBI MSME Pulse update.

Credit growth has resumed in earnest, the report stated. The year-on-year (YOY) Commercial Credit growth continues to rise clocking 12.4% in the Mar'19 quarter. Large (greater than Rs 100 Crores exposure) segment has shown high credit growth of 11% signaling revival trends. Micro (exposure less than Rs 1 Crore) and SME(Rs 1 Crore - Rs 25 Crores) segments constitute Rs 15.8 Lakh Crores credit exposure (24.9% of Commercial Credit exposure) scaling YOY growth of 19.8% and 15.6% respectively.

In comparison it is 5.5% for Mid segment (Rs 25 Crores- Rs 100 Crores) from Mar'18 to Mar'19.Gujarat tops credit opportunity and risk index in MSME Corporate Segment: Gujarat has emerged as the top ranking state, in terms of performance and credit growth potential for MSME Corporate Lending in India, followed by Andhra Pradesh, Haryana, Karnataka and Delhi. MSME Corporate entities are defined basis the aggregate credit exposure up to Rs 50 Crores.

The market size of this category is Rs 17.6 Trillion as of Mar'19. Other states with high potential in MSME Corporate Lending are Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh and Jammu & Kashmir. Andhra Pradesh ranks highest in Market Growth in FY19; ranking improved significantly in Market Growth and Delinquency parameters between FY17 to FY19.

Haryana and Karnataka have got equal scores in MSME Ranking, but Haryana fared better in Delinquency and Score Quality of consumers while Karnataka is positioned well in Market size and market growth. The Ranking of Haryana has improved significantly in the Market Growth parameter. Delhi ranks highest in low riskiness of MSMEs measured by better CIBIL MSME Rank of entities.

As of Mar'19, the total on-balance sheet Commercial Lending exposure in India stood at Rs 64.1 Lakh Crores with the Micro and SME segments constituting Rs 15.9 Lakh Crores exposure (~24.9% of commercial credit outstanding). Large corporates having aggregated credit exposure of more than Rs 100 Crores, account for Rs 42.3 Lakh Crores (~65.9% of commercial credit outstanding). Micro Loans (less than Rs 1 Crore) and SME Loans (Rs 1 Crore - Rs 25 Crores) continue to grow in the commercial lending space showing YOY growth of 19.8% and 15.6% respectively. While Mid (Rs 25 Crores -Rs 100 Crores) segment has grown by 5.5%, Large (>Rs 100 Crores) segment has shown high growth of 11.8% over Mar'18 to Mar'19 period.

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