MSME Pulse

The Need Of MSME PULSE

Highlights of MSME Pulse: July’2026

The MSME Pulse Report (July 2026) presents a comprehensive assessment of India’s MSME credit ecosystem by integrating commercial lending data with business-oriented loans availed by individuals in personal capacity. Aligned with the revised MSME classification and enhanced exposure threshold of up to ₹100 crore, the report offers a more holistic picture of commercial credit flows, borrower behaviour, and portfolio quality.

• Outstanding commercial balances combined for individual and enterprise borrowing stood at ₹65.8 Lakh Crore as on Mar 2026, with individuals now comprising 28% of balance share.
• Commercial entities with aggregate exposure greater than ₹10L witnessed double-digit growth in 3-year period ending Mar 2026.
• Entities with aggregate credit exposure ₹2-10L, which has the highest share of new-to-credit (NTC) entities, experienced slowest growth at 5% 3-year CAGR in outstanding balances during the same period.
• NTC share in commercial entity originations has declined from 52% in FY2023 to 42% in FY2026.
• While balance-level delinquencies have remained stable, certain pockets have witnessed emerging stress in early delinquencies - Accounts ever 90+ DPD in 12 months since originations for unsecured BL have shown 2.9x higher delinquency for Mar 2025 originations when compared to overall. Similarly, enterprise borrowers with aggregate exposure ₹2-10L segment witnessed 2.1x times higher delinquencies.
• Distinct borrower segments are being served by different lender types, with PSBs enabling entry-level access to entities under ₹10L exposure, NBFCs scaling ₹10L-2Cr segment, and private banks dominating >2Cr exposures.
• Textiles, Professional services, Wholesale trade and infra-linked industries are dominated by ₹10L-2Cr exposure segment, while retail trade, tourism, food processing, agriculture and allied industries are dominated by ₹2-10L exposure segment.