The Scheduled Commercial Banks need to understand the problem of the sector and devise strategies to gear their credit mechanism structure so as to achieve the prescribed target of lending to the sector as recommended by the PM’s Task Force. Sensitivity on the issue needs to be developed at various hierarchical levels. 7.
Over the years, there has been a significant increase in credit extended to this sector by the banks as may be seen from Table-1 below. As at the end of March 2013, the total outstanding credit provided by all Scheduled Commercial Banks (SCBs) to the MSE sector stood at Rs.6,84,796 crore as against Rs.5,27,684 crore in March 2012, registering an increase of 29.77%.