New Delhi, July 30 -- Public sector banks (PSBs) have reported a significant drop in bad loans within the micro, small, and medium enterprise (MSME) sector, thanks to an increase in lending and a decline in non-performing assets (NPAs).

As of March 31, loans extended by PSBs to MSMEs rose to Rs 13.07 lakh crore, marking an 11.3 per cent increase compared to the previous year. Simultaneously, the value of non-performing MSME loans dropped 14 per cent year-on-year to Rs 80,749 crore.

This improvement has been most evident in small and medium enterprises. Bad loans to small enterprises fell by 28 per cent year-on-year to Rs 19,677 crore, while NPAs in medium-sized enterprises declined 30 per cent to Rs 8,553 crore. Compared to March 2023, ...