New Delhi, Jan. 9 -- Loans to MSMEs accounted for a significantly higher share of incremental bank credit during January-October 2025, supported largely by lending from public sector banks (PSBs), according to a latest report by Crisil Intelligence.

MSME Share in Incremental Credit Nearly Doubles

Crisil said the share of incremental credit flowing to MSMEs rose sharply to 32.5 percent during the period, compared with 17.7 percent in the corresponding period last year. The proportion of MSME loans in overall outstanding bank credit also increased by 1.74 percent.

However, in line with observations made in the Reserve Bank of India's Financial Stability Report, Crisil flagged early signs of stress in small-ticket, unsecured MSME loans. I...