Risk performance across micro, small and medium segments is showing broad improvement.
The total sanctioned value stood at Rs 53.5 lakh crore, seeing a marginal decline from Rs 55.6 lakh crore as of March 2024. (Source: financialexpress)
The MSME portfolio outstanding, including loans to entities and self-employed individuals, jumped to Rs 83.5 lakh crore as of March 2025 from Rs 68 lakh crore as of March 2024 across public sector banks, private banks, and non-banking financial companies, said a report by credit bureau Crif High Mark. However, the total sanctioned value stood at Rs 53.5 lakh crore, seeing a marginal decline from Rs 55.6 lakh crore as of March 2024, while total sanctioned volume reported negligible drop to 2.73 crore from 2.87 crore.
At the entity level, the portfolio outstanding jumped 20 per cent to Rs 40.4 lakh crore as of March 2025 from Rs 33.6 lakh crore as of March 2024 while active loans grew only 1.3 per cent to Rs 2.14 crore. However, sanctioned loan value dropped 7.4 per cent to Rs 36.9 lakh crore even as volume increased 17 per cent to 75.8 lakh, according to the report.
Over three years, the value share of micro exposure business loans declined, while small and medium exposure business shares grew, indicating shifting credit flow toward higher-value borrower segments.
Moreover, micro exposure business volumes continued to dominate, reaching 58.0 lakh in FY25, though growth appears to be more volume-driven than value-driven.
With respect to asset quality, risk performance across micro, small and medium segments is showing broad improvement. Small exposure businesses lead the improvement with consistent reductions in delinquency rates, while micro exposure businesses are stabilising following prior volatility.
The portfolio at risk (PAR) by 31-180 days stood at 4.23 per cent as of March 2025 from 4.54 per cent last year in the micro segment while in small business loans, PAR 31-180 days improved to 2.51 per cent from 2.62 per cent.
Also read: MSME NPAs Mirroring Trends in Overall Banking Sector: CGTMSE CEO Manish Sinha
On the other hand, medium exposure businesses remain steady with contained risk, collectively pointing to a gradually improving credit environment and stronger repayment behaviour across borrower segments. As of March 2025, PAR 31-180 for loans to medium enterprises stood at 2.41 per cent from 2.40 per cent as of March 2024.
In terms of market share, NBFCs' portfolio share rose from 9.7 per cent in March 2023 to 12.9 per cent in March 25, while private banks held steady at around 43 per cent. In contrast, PSU Banks' share declined from 37.6 per cent to 34.4 per cent, signalling a gradual market shift.
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