While the headline numbers of non-performing assets (Gross and Net NPAs) are higher in this segment, if one reckons the extent of restructuring and write-offs that are resorted to in the medium and large borrower segments, the credit risk would appear to be much lower in the MSE sector.
A comparative table indicating the extent of NPAs, restructuring and cumulative write-offs in micro and small vis-à-vis medium and large segments during the last five years is given below: The data clearly highlights the fact that in the recent scenario of rising impairment of assets in the banking sector, it is the MSEs that have demonstrated better credit discipline resulting in lower impairment. 7.