Even as the economy has largely recovered from the shocks of demonetization and GST implementation, micro enterprises with borrowings of under Rs 10 lakh are yet to fully recover, a report said today. "Micro, small and medium enterprises (MSMEs) with exposures from Rs 10 lakh to Rs 10 crore have recovered to pre-demonetization levels, (but) the segment with exposure of less than Rs 10 lakh has still not recovered to that extent," the report by Transunion Cibil and Sidbi said. The report reiterated that the situation has improved in all segments except those with borrowings less than Rs 50 lakh, where the systemic exposure has not caught up with pre-demonetization levels. The micro enterprises having borrowings of less than Rs 1 crore had an NPA of 8.8 per cent in December 2017 versus 9.2 per cent in the year-ago period. "There is a structural opportunity in the MSME segment, which is both profitable as well as impactful," Sidbi's chairman and managing Mohammed Mustafa told reporters.

Source: dna March 13, 2018 11:03 UTC