New Delhi, Sept. 20 -- Non-performing assets (NPAs) in the Micro, Small and Medium Enterprises (MSME) sector may see a marginal uptick, particularly in select export-oriented industries, amid global trade headwinds and portfolio seasoning, according to Crisil Ratings.

"MSME NPAs may witness an inch-up in select export-oriented sectors, also with seasoning; retail unsecured loans remain a monitorable," said Crisil in a presentation during its Banking conclave 2025.

The presentation shows a significant improvement in the asset quality of the MSME sector over the past five years, with the gross Non-Performing Assets (NPA) ratio steadily declining from 8.7 per cent in March 2021 to 3.6 per cent in March 2025.

This downward trend reflects t...