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FinMin sets Rs 17.31 trillion MSME lending target for PSBs in FY26

MSME lending target for PSBs raised 19.5%

MSME credit target FY26, MSME loans public sector banks, PSB MSME lending growth, Finance Ministry MSME focus, India MSME sector credit, SBI MSME loan target 2025, PNB MSME lending growth, MSME credit outstanding FY25, MSME loan YTD growth 2025, GNPA
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A govt source said banks remained cautious about potential bad loans in the sector

Harsh Kumar New Delhi

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Amid increasing focus by the Union government for the micro, small, and medium enterprises (MSME) sector, the finance ministry has set a target for total MSME credit outstanding across all public sector banks (PSBs) at ₹17.31 trillion for the financial year 2025-26 (FY26). This represents a projected increase of 19.5 per cent over the expected outstanding loans of ₹14.49 trillion for FY25, according to a senior government official.
 
As per the latest data sourced by Business Standard, the total MSME credit outstanding of PSBs as of February 28, 2025 stood at ₹13.04 trillion, reflecting a year-to-date (YTD) growth of 11.17