Gross bank credit disbursed to the micro and small enterprises (MSE) sector in India witnessed a year-on-year growth of 27% in May 2022 as compared to 19.7% in April 2022. After continuously falling for three months from September to November 2021, bank credit to MSEs started picking up from December 2021 and saw a solid revival during the fourth quarter of the financial year 2021-22. This upsurge has been due to the significant growth in lending achieved by the private sector banks following the increase in domestic demand supported by the revival of ancillary units and the service sector.
